Suppose labour supply depends positively on net of tax wage (Wt) and labour demand depends negatively on gross wage. [5 points] a) Assuming perfectly flexible wages and prices, what will be the effect on the market clearing level of employment (N), and output (Y), of a cut in the marginal tax rate (t). b) Total tax revenues T = t* Wt*N. What will be the effect of a tax cut on total revenues