According to the supply side fiscal policy, increasing tax rates on wages will: Group of answer choices result in higher unemployment and inflation. increase the real output as well as the price level. reduce both unemployment and the price level. lower the price level but raise unemployment.
According to the supply side fiscal policy, increasing tax rates on wages will: Group of answer choices result in higher unemployment and inflation. increase the real output as well as the price level. reduce both unemployment and the price level. lower the price level but raise unemployment.
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 13SQ
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Question
According to the supply side fiscal policy, increasing tax rates on wages will:
Group of answer choices
result in higher unemployment and inflation.
increase the real output as well as the price level.
reduce both unemployment and the price level.
lower the price level but raise unemployment.
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