The supply of low-skilled workers in China is perfectly elastic. In 2011, when China cut the tax
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The supply of low-skilled workers in China is perfectly elastic. In 2011, when China cut the tax on these workers’ incomes from 5 percent to zero, _____.
A. Employers cut the wage rate but hired the same number of workers
B. Employers cut the wage rate and hired more workers
C. Employers didn’t change the wage rate but hired more workers
D. Employers didn’t change the wage rate and hired the same number of workers
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