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If the Government Places a New Tax on the Hiring

Question 39

Multiple Choice

If the government places a new tax on the hiring of workers,then we would expect


A) both the short run and long run Phillips curve to shift to the right.
B) both the short run and long run Phillips curve to shift to the left.
C) the long run Phillips curve remains unchanged while the short run Phillips curve shifts to the right.
D) the short run Phillips curve remains unchanged while the long run Phillips curve shifts to the right.
E) none of the above.

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