If the income taxes on wages increase,the labor supply curve will shift left,but what happens to the unemployment rate?
A) It unambiguously falls because the labor participation rate changes.
B) It unambiguously falls because some workers drop out of the workforce.
C) It unambiguously rises because some workers drop out of the workforce.
D) It is ambiguous because some workers drop out of the workforce.
E) None of the above is correct.
Correct Answer:
Verified
Q19: Over the course of his or her
Q20: Over the past 50 years or so,
A)the
Q22: Wage rigidity:
A)helps the labor market achieve equilibrium.
B)prevents
Q24: An increase in labor regulations results in:
A)
Q25: Because of the dynamics of the workforce,for
Q26: An institutional fixed wage set above the
Q27: The labor demand curve slopes downward because:
A)wages
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