Figure 6.3

-Refer to Figure 6.3.Holding other variables constant,a decrease in income taxes accompanied by an increase in the skill level of workers will result in a

Question

Figure 6.3 -Refer to Figure 6.3.Holding other variables constant,a decrease in income taxes accompanied by an increase in the skill level of workers will result in a

Quizplus · Accepted Answer

A decrease in income taxes increases disposable income, leading to an increase in demand (shift from D₁ to D₂). An increase in the skill level of workers increases productivity, leading to an increase in supply (shift from S₁ to S₂).

Figure 6.3 -Refer to Figure 6.3.Holding Other Variables Constant,a Decrease in Income