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Consider the following statement about a government that provides a wage subsidy: It does not matter whether the subsidy is paid to the worker or
Consider the following statement about a government that provides a wage subsidy: "It does not matter whether the subsidy is paid to the worker or to the firm since employment and total pay received by the worker (wages and subsidy) will be the same in both cases." Graph labour supply and demand curves to show whether this statement is right or wrong
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