Government attempts to create a more equitable income distribution by increasing marginal tax...

Question:

Government attempts to create a more equitable income distribution by increasing marginal tax rates may

a. reduce output

b. increase unemployment

c. reduce government tax receipts

d. increase work effort

Equitable Income Distribution:

Equitable income distribution refers to the process by which the government uses a progressive tax system where it taxes more to the individuals earning more and less to individuals earning less. Equitable income distribution helps to promote unity in society since it helps to bridge the gap between the rich and poor in society. Besides, a more equitable income distribution helps to enhance equitable regional development since each member of the society have been taken into consideration.

Answer and Explanation:

Government attempts to create a more equitable income distribution by increasing marginal tax rates may

a. reduce output

Government attempts to...

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