The Government Increases the Tax Rate on Labour Income and at the Same

The government increases the tax rate on labour income and at the same time cuts the rate of sales tax to keep the amount of tax collected constant.As a result,the supply of labour ________,the demand for labour ________,and the equilibrium level of employment ________.The before-tax wage rate ________,and the after-tax wage rate ________.Potential GDP ________.

A) decreases;does not change;decreases;rises;falls;decreases
B) decreases;increases;does not change;rises;falls;does not change
C) does not change;does not change;does not change;does not change;does not change;does not change
D) decreases;decreases;decreases;rises;falls;decreases
E) does not change;increases;increases;does not change;decreases;increases