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In the one-period closed-economy model, a proportional tax on labor income leads to an inefficient economic outcome, because proportional income tax _______________. A.only benefits the
In the one-period closed-economy model, a proportional tax on labor income leads to an inefficient economic outcome, because proportional income tax _______________.
A.only benefits the richest of the rich and makes the poor worse off
B.prevents people from trying to pursue new jobs where more money can be made
C.prevents consumers from purchasing any consumption and leisure goods
D.gives consumers a disincentive to work and tends to lower aggregate consumption and output
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