LO 4 Assume a proportional tax is imposed on wage. Given that the amount of tax revenue

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LO 4 Assume a proportional tax is imposed on wage. Given that the amount of tax revenue remains constant, the government plans to stop imposing a proportional tax in favor of a lump-sum tax on wage in order to increase labor supply. Can the government achieve its goal? Use a diagram to show the efects.

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Macroeconomics

ISBN: 9781292215792

6th Global Edition

Authors: Stephen Williamson

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