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Figure 1 (shown below )qualitatively plots (in (tho) space) the job creation function for an initial value of the corporate profit tax rate H =

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Figure 1 (shown below )qualitatively plots (in (tho) space) the job creation function for an initial value of the corporate profit tax rate H = rflinitia' . d. (11 points ) Suppose that the U.S. Congress passes legislation that increases the corporate profit tax rate from the initial rate rhini'ial. Given the higher corporate tax rate , does the job creation function in Figure 1 shift? If it does not shift, clearly (but briey ) explain the economic interpretation of why not. If it does shift, plot qualitatively in Figure 1 the direction in which it shifts (inwards or outwards) and clearly (but briefly )explain the economic interpretation of why it shifts in the direction plotted in Figure 1. (Note : Economic interpretation is not simply a verbal restatement of the mathematics ; an explanation that relies only on mathematics may be awarded ZERO points .) initial job creation function with 1-? = Trauma: Job creation function (aka labor demand I! Figure 1. Job creation function plotted for initial value of corporate tax rate 1' = Itini'ial

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