The government increases the tax rate on labour income. At the equilibrium level of employment, the before-tax wage rate ________ and the after-tax wage rate ________.

Name: The government increases the tax rate on labour income. At the equilibrium level of employment, the before-tax wage rate ________ and the after-tax wage rate ________.
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The government increases the tax rate on labour income. At the equilibrium level of employment, the before-tax wage rate rises and the after-tax wage rate falls.

The Government Increases the Tax Rate on Labour Income