Question

Some economists believe that higher marginal income tax rates __________ the incentive to work and thus shift the __________. Question 14 options: increase; AD curve to the right increase; SRAS curve to the right increase; SRAS curve to the left decrease; AD curve to the left decrease; SRAS curve to the left Question 15 (1 point)

Answer 1

The answer is "Decrease; SRAS curve to the left".

Step-by-step explanation:

It indicates that certain incomes fall into additional tax categories, owing to a higher percentage of all raising revenue earned above the preceding category. Increased marginal cost tax rates would require a greater percentage of tax revenue. It will cut labor and lower output so that the limited supply aggregate curve could be moved to the left.