In an economy experiencing a significant digital transformation with widespread adoption of remote work, the government decides to introduce tax incentives for companies that maintain or create jobs in rural and less developed regions. What is the most likely short-term impact of this policy on regional economic disparities and urban employment levels? A) A reduction in regional economic disparities and a decrease in urban employment levels. B) Little change in regional economic disparities, but an increase in urban-rural migration. C) A moderate reduction in regional economic disparities and minimal impact on urban employment levels. D) Increased regional economic disparities due to a concentration of skilled jobs in urban areas.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
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Question: In an economy experiencing a significant digital transformation with widespread adoption of remote work, the government decides to introduce tax incentives for companies that maintain or create jobs in rural and less developed regions. What is the most likely short-term impact of this policy on regional economic disparities and urban employment levels? A) A reduction in regional economic disparities and a decrease in urban employment levels. B) Little change in regional economic disparities, but an increase in urban-rural migration. C) A moderate reduction in regional economic disparities and minimal impact on urban employment levels. D) Increased regional economic disparities due to a concentration of skilled jobs in urban areas.

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