According to the classical system,a decrease in the income tax rate reduces the after-tax real wage
A)and shifts the labor supply schedule to the right.
B)and shifts the labor supply schedule to the left.
C)without shifting the labor supply schedule.
D)None of the above

Question

Quizplus · Accepted Answer

A decrease in the income tax rate increases the after-tax real wage, which makes people more willing to work, shifting the labor supply schedule to the right.

According to the Classical System,a Decrease in the Income Tax