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Suppose that the substitution effect of a decrease in the real wage always dominates the income effect for the representative consumer.Also, assume the economy is

Suppose that the substitution effect of a decrease in the real wage always dominates the income effect for the representative consumer.Also, assume the economy is always in the low-tax-rate equilibrium on the good side of the Laffer Curve.Determine the effects of a decrease in total factor productivity, z, on

a)the Laffer Curve

b)the equilibrium tax rate (t)

c)after-tax wage rate = z(1-t)

d)leisure (l)

e)quantity of labor supply (N)

f)consumption (C)

and output (Y)

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