LO 5 Suppose that the current tax rate is higher than t*, which is the rate that

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LO 5 Suppose that the current tax rate is higher than t*, which is the rate that yields the highest tax revenue. Some government oicials propose to increase the tax further in order to raise more government revenue. They argue that a higher tax rate would motivate people to work harder to maintain their wage incomes. As an economic advisor to the government, do you agree with this argument? Explain.

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Macroeconomics

ISBN: 9781292215792

6th Global Edition

Authors: Stephen Williamson

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