
The figure above shows the U.S. supply of labor curve.
-An increase in the income tax rate leads to a
A) rightward shift of the supply of labor curve.
B) movement upward along the supply of labor curve from a point such as C to a point such as B.
C) leftward shift of the supply of labor curve.
D) movement downward along the supply of labor curve from a point such as A to a point such as B.
E) None of the above answers is correct because there is no change in the supply of labor curve.
Correct Answer:
Verified
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