The figure above shows a labour market with an income tax.
-The tax wedge in the figure above is equal to ________ per hour, which creates an after-tax real wage rate of ________ per hour and employment of ________ billion hours per year.
A) $5; $35; 200
B) $10; $35; 250
C) $15; $30; 250
D) $15; $20; 200
E) $10; $35; 200
Correct Answer:
Verified
Q37: Which of the following is true?
A) Automatic
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