An increase in the marginal tax on labour income, increases the supply of labour.

Name: An increase in the marginal tax on labour income, increases the supply of labour.
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Question

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An increase in the marginal tax on labour income provides individuals with less after-tax income for working. Therefore, it decreases the incentive to work and may decrease the supply of labour in the economy.

An Increase in the Marginal Tax on Labour Income, Increases