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The city council votes to impose a 1% tax on the incomes of residents. Which of the following best describes how to represent the tax
The city council votes to impose a 1% tax on the incomes of residents. Which of the following best describes how to represent the tax in the graphical model of consumption and leisure choice? Because the tax doesn't change their wages, it doesn't change budget constraints. The tax shifts the budget constraint down. The tax makes the budget constraint steeper. The tax makes the budget constraint less steep
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