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The Government Increases the Sales Tax on All Goods but Does

Question 76

Multiple Choice

The government increases the sales tax on all goods but does not change the tax on income earned from labour.What happens?


A) The quantity of labour demanded decreases,but the demand for labour does not shift.
B) The demand for labour decreases.
C) The supply of labour increases.
D) There is no change in the labour market.

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