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Author Question: The nonlabor income of households will increase, causing consumption to increase and labor supply to ... (Read 58 times)

wenmo

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Question 1

The nonlabor income of households will decrease, causing consumption to decrease and labor supply to increase, if the government


◦ increases the corporate profits tax.
◦ increases transfer payments.
◦ implements expansionary fiscal policy.
◦ decreases the personal income tax.

Question 2

The nonlabor income of households will increase, causing consumption to increase and labor supply to decrease, if the government


◦ decreases the corporate profits tax.
◦ decreases transfer payments.
◦ implements contractionary fiscal policy.
◦ increases the personal income tax.


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Marked as best answer by wenmo on Apr 19, 2019

whitcassie

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