Author Question: Static tax analysis assumes that A) an increase in a tax rate may lead to a decrease in the tax ... (Read 34 times)

erika · **on:** Jun 29, 2018

Static tax analysis assumes that

A) an increase in a tax rate may lead to a decrease in the tax base.
B) an increase in a tax rate will lead to an increase in the tax base.
C) an increase in a tax rate will leave the tax base unchanged.
D) the tax base will always remain unchanged.

Question 2

Suppose the current unemployment rate is 15 percent. If it rises to 20 percent

A) the economy will move up along the production possibilities curve.
B) the economy will move closer to the production possibilities curve.
C) the production possibilities curve will shift inward.
D) the economy will operate farther inside the production possibilities curve.