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Increase tax rate on labour income

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Reference no: EM131220161

THE government is proposing to increase tax rate on labour income and ask you to report on the supply side effects of such action. Use graphs to so the effects on the supply of labour, demand of labour, the equilibrium before tax wage rate, the equilibrium after tax wage rate, equilibrium level of employment and potential GDP, and state why respectively?

Reference no: EM131220161

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