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Author Question: Cuts in the marginal rate of income tax are claimed to have various beneficial supply-side effects. ... (Read 84 times)

NguyenJ

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Question 1

Give an example of demand-side policy which has supply-side effects. (Explain)

Question 2

Cuts in the marginal rate of income tax are claimed to have various beneficial supply-side effects. These are:

a) People work longer hours because the substitution effect from cutting the marginal rate of income tax is less than the income effect.
True / False
b) More people wish to work.
True / False
c) People work more enthusiastically.
True / False
d) Both equilibrium and disequilibrium unemployment fall even when wages are inflexible downwards.
True / False
e) Employment rises.
True / False


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Marked as best answer by NguyenJ on May 25, 2020

zenzy

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NguyenJ

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Reply 2 on: May 25, 2020
Excellent


dyrone

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Reply 3 on: Yesterday
:D TYSM

 

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