A Microeconomist Would Most Likely Study the Effect of a Reduction

question 45

Multiple Choice

A microeconomist would most likely study the effect of a reduction in income tax rates on:

• A)​total output in the economy.
• B)​the output of the steel industry.
• C)​inflation.
• D)​unemployment.

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Definitions:

Tariff Revenue

is the income generated by a government from the imposition of tariffs, which are taxes on imported goods.

Tariff

A tax imposed by a government on goods and services imported from other countries to protect domestic industries or to generate revenue.

United States

A country located in North America known for its diverse culture and significant influence in world politics, economy, and culture.

Purchased

Refers to the action of buying goods or services in exchange for money or its equivalent.