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a) What is a typical payroll tax in Canada? 1 Mark b) How does an increase in payroll tax affect the demand for labour, and

a) What is a typical payroll tax in Canada? 1 Mark b) How does an increase in payroll tax affect the demand for labour, and average wage rates? Explain. 2 Marks c) Why do governments tend to increase minimum wage rate when economic conditions are good, and freeze minimum wage rares when the economy is in a slump? 2 Marks

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