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The Supply Side Effects of a Change in Taxes on Labor

Question 72

Multiple Choice

The supply side effects of a change in taxes on labor income means that ________ in taxes on labor income will shift the ________.


A) an increase; labor supply curve rightward
B) an increase; labor supply curve leftward
C) a decrease; labor demand curve rightward
D) a decrease; labor demand curve leftward

Correct Answer:

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