MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
10th Edition
ISBN: 9781319467203
Author: Mankiw
Publisher: MAC HIGHER
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Chapter 19, Problem 3QQ
To determine
The random walk hypothesis.
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Students have asked these similar questions
The Laffer curve demonstrates that:
policymakers will always reduce tax revenues by raising tax rates.
policymakers can always increase tax revenues by raising tax rates.
none of the other answers are correct
above some point on the tax rate scale, lowering tax rates increases tax revenues.
if tax rates are 100%, there will be large tax revenues.
The Laffer curve suggests which of the following?
a. the optimal tax rate on labor income is 0%
b. an increase in tax rates leads to an increase in labor supply.
c. there is some maximum amount of tax revenue that the government can collect from taxing income.
d. the optimal tax rate leads to the highest amount of tax revenue.
MPC. Explain in short.
Chapter 19 Solutions
MACROECONOMICS+ACHIEVE 1-TERM AC (LL)
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