Suppose the government decreases the federal income tax.What happens to the labor market equilibrium?

Question

Quizplus · Accepted Answer

When the government decreases the federal income tax, workers get to keep more of their earnings, increasing the attractiveness of working additional hours. This leads to an upward shift in the labor supply schedule, as more people are willing to work or workers are willing to work more hours at each wage level.

Suppose the Government Decreases the Federal Income Tax