A candidate is running for public office and is against making any tax cuts because of a concern that this will lead to lower tax revenue and a higher budget deficit. His aides have told him that studies have shown that the income effect dominates the substitution effect along the labor supply curve. If this is true does this support the candidate's position on cutting taxes if his goal is to insure that tax revenue does not fall? Explain.

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The Answer of A candidate is running for public office and is against making any tax cuts because of a concern that this will lead to lower tax revenue and a higher budget deficit. His aides have told him that studies have shown that the income effect dominates the substitution effect along the labor supply curve. If this is true does this support the candidate's position on cutting taxes if his goal is to insure that tax revenue does not fall? Explain.

A Candidate Is Running for Public Office and Is Against