Suppose that Yakov, an economist from a research institute in Texas, and Ana, an economist from a public television program, are arguing over budget deficits. The following dialogue shows an excerpt from their debate:Ana: Most people recognize that the budget deficit has been rising considerably over the last century. We need to find the best course of action to remedy this situation.Yakov: I believe that a cut in income tax rates would boost economic growth and raise tax revenue enough to reduce budget deficits.Ana: I actually feel that raising the top income tax rate would reduce the budget deficit more effectively.The disagreement between these economists is most likely due to _____Despite their differences, with which proposition are two economists chosen at random most likely to agree?A. Rent ceilings reduce the quantity and quality of available housing.B. Immigrants receive more in government benefits than they contribute in taxes.C. Having a single income tax rate would improve economic performance.

Respuesta :

The disagreement between these economists is most likely due to their differing opinions on the point we are on the Laffer Curve.

Despite their differences, with which proposition are two economists chosen at random most likely to agree :  Rent ceilings reduce the quantity and quality of available housing

Explanation:

In general, the Laffer curve is a chart that begins at 0% tax with a zero income, increases to a maximum income at an intermediate tax rate, and then falls back to negative income at a 100% rate. But the shape of the curve between economists is ambiguous and contentious.

The rental limit is the highest rental rate that can be used in a particular area.

If owners of apartments have to set a rental limit they usually cover their income (e.g. minimise accommodation support or use cheap materials for assembling furniture) in any other manner.