Refer to the following figure when answering the following questions.
Figure 15.1: The Labor Market
-Consider Figure 15.1, which is a representation of the labor market. In 2008, China reduced its corporate tax rate from 33 percent to 25 percent; this would cause a shift from curve ________, because changes in taxes are ________ in the stylized DSGE model.
A) similar to a change in TFP
B) the opposite of a change in income taxes
C) identical to a change in income taxes
D) negatively affected by TFP
E) None of these answers is correct.

Question

Refer to the following figure when answering the following questions.
Figure 15.1: The Labor Market 
-Consider Figure 15.1, which is a representation of the labor market. In 2008, China reduced its corporate tax rate from 33 percent to 25 percent; this would cause a shift from curve ________, because changes in taxes are ________ in the stylized DSGE model.
A) similar to a change in TFP 
B) the opposite of a change in income taxes 
C) identical to a change in income taxes 
D) negatively affected by TFP 
E) None of these answers is correct.

Quizplus · Accepted Answer

The Answer of Refer to the following figure when answering the following questions.
Figure 15.1: The Labor Market 
-Consider Figure 15.1, which is a representation of the labor market. In 2008, China reduced its corporate tax rate from 33 percent to 25 percent; this would cause a shift from curve ________, because changes in taxes are ________ in the stylized DSGE model.
A) similar to a change in TFP 
B) the opposite of a change in income taxes 
C) identical to a change in income taxes 
D) negatively affected by TFP 
E) None of these answers is correct.

Refer to the Following Figure When Answering the Following Questions