Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 17.2, Problem 1ST
To determine
Impact of decline in taxes on labor market and rightward shift of the LRAS curve.
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If the government got rid of sales tax, how might this affect the market?
shift AD to the right
shift SRAS to the right
shift AD to the left
shift SRAS to the left
Using an Agregate demand-Agregate supply diagram, explain what happens if personal income taxes increase.
Explain what will happen to an Agregate demand-Agregate supply diagram, if there is a decrease in input prices.
Explain how the changes in wages can affect equilibrium.
Discuss the three main supply-side policies that the government can use to reduceunemployment?
Chapter 17 Solutions
Economics (MindTap Course List)
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