The government increases the tax rate on labour income.At the equilibrium level of employment,the before-tax wage rate ________ and the after-tax wage rate ________.Potential GDP ________.
A) rises;falls;decreases
B) falls;rises;does not change
C) rises;falls;does not change
D) falls;rises;decreases
E) rises;falls;increases
Correct Answer:
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A)decreases the demand
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A)in a
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A)is a persistent economic phenomenon.
B)occurs
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