The supply-side effect of fiscal policy shows that an increase in the marginal tax rate on labor income will do the following:
A. Decrease in potential GDP
B. Increases potential GDP because people work more as they have less disposable income
C. Increase the incentive to work
D. Increases the equilibrium quantity of labor as firms demand more workers at the lower wage
what is oligopoly
Please explain in three well-structured paragraphs the impact of a change in the savings rate on the output.
Distinguish between “Structural unemployment” and “cyclical (demand deficiency) unemployment
[P=PE(1+m)(1-au+z)