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Q2. 1-Explain the impact of payroll tax on the labor market. 2-What happens to the employment level and wages when the payroll tax is levied

Q2.

1-Explain the impact of payroll tax on the labor market.

2-What happens to the employment level and wages when the payroll tax is levied on the workers?

3-Compare this to the situation when the payroll tax is levied on the firm. Use graphs to explain your points.

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