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Question 4 (Distortionary tax) Suppose the government imposes a proportional income tax on the representative consumer's wage income, in addition to the lump-sum tax T.

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Question 4 (Distortionary tax) Suppose the government imposes a proportional income tax on the representative consumer's wage income, in addition to the lump-sum tax T. That is, the consumer's after-tax wage income is (10sz , where 0 0. Illustrate your answer with a diagram

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