True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.

True

Explanation:

This is the case because tax cuts and government spending are instruments that could be used in expansionary fiscal policy.

Note that reduced taxes usually have a direct impact on the disposable income of a economy not the composition of labor demand. Tax cuts leads directly to consumption and savings increase, resulting from increase in disposable income in the economy.

answer; interviews;

answer; communities of interest; i believe this is correct, plz check first good luck;