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Cost Reduction
Positive measures to effect a lowering of costs include:
reducing national insurance contributions (an ad valorem tax on employing labor);
improving the supply and quality of labor, e.g. by developing training schemes, encouraging flexible working hours to attract part-time workers, improving mobility, granting subsidies to firms to locate in the Assisted Areas where surplus workers are available;
providing advisory services.
How does an increase in income affect a consumer's budget line and their total utility?
If income falls below its potential and the income tax rate is reduced, this will: A. raise the passive deficit but reduce the structural deficit. B. raise both the passive and str
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