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7. a. Income tax rates increase. Use the labor market diagram and the aggregate production function to show the effect this would have on the
7. a.
Income tax rates increase. Use the labor market diagram and the aggregate production function to show the effect this would have on the real hourly wage, the level of employment, and real GDP.
New technology allows employers to block workers from browsing nonwork websites at work and labor productivity consequently increases. Use the aggregate production function to show the effect this will have on real GDP.
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