What is the impact on the labour market due to a reduction in income tax rate? Select one: O a. labour demand shifts to the right; wage rate increases and level of employment increases O b. labour supply shifts to the right; wage rate decreases and level of employment is higher labour supply shifts to the left; wage rate increases and level of employment is lower O d. labour demand shifts to the left; wage rate decreases and level of employment decreases
What is the impact on the labour market due to a reduction in income tax rate? Select one: O a. labour demand shifts to the right; wage rate increases and level of employment increases O b. labour supply shifts to the right; wage rate decreases and level of employment is higher labour supply shifts to the left; wage rate increases and level of employment is lower O d. labour demand shifts to the left; wage rate decreases and level of employment decreases
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Unemployment
Section: Chapter Questions
Problem 10PA
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