An increase in taxes on labour income shifts the labour supply curve ________ and the ________.

Name: An increase in taxes on labour income shifts the labour supply curve ________ and the ________.
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An increase in taxes on labour income reduces the incentive for individuals to work, thus shifting the labour supply curve leftward. This decrease in labour supply leads to a fall in the after-tax wage rate as there is less labour available at the previous wage rate.

An Increase in Taxes on Labour Income Shifts the Labour