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(b) Examine the shortrun and longrun e'ects of an income tax, Instead of receiving wL + TK, households receive (1 1)(wL + 10K). The government
(b) Examine the shortrun and longrun e'ects of an income tax, Instead of receiving wL + TK, households receive (1 1")(wL + 10K). The government consumes the tax revenues. How does your answer change if the government invests the tax revenues instead? [10 points]
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Environmental Economics and Management Theory, Policy and Applications
Authors: Scott J. Callan, Janet M. Thomas
6th edition
1111826673, 1111826676, 1439080634, 1439080631, 9781285528540 , 978-1111826673
