When Income Taxes Are Lowered in a Given Economy,it Causes

question 90

Multiple Choice

When income taxes are lowered in a given economy,it causes the supply of labor curve to shift __________which ___________ the equilibrium quantity of labor employed.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis) this then causes _______________,which makes the LRAS curve shift ____________ resulting in ______________________.

• A) rightward; raises; the production function to shift upward; rightward; economic growth
• B) leftward; lowers; the production function to shift downward; leftward; a shrinking economy
• C) rightward; raises; a movement up along a given production function; rightward; economic growth
• D) rightward; raises; a movement down along a given production function; leftward; a shrinking economy

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Definitions:

Death Benefits

Financial compensation paid to the beneficiaries or dependents of a deceased individual, usually through insurance or social security.

Preauthorization

Authorization or approval for payment from a third-party payer requested in advance of a specific procedure.

Third-party Payer

An entity (usually an insurance company or government agency) that pays medical expenses on behalf of the patient.

Elective Procedure

A medical procedure that is not required to sustain life but is requested for payment to the third-party payer by the patient or physician. Some elective procedures are paid for by third-party payers, whereas others are not.