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When considering an income tax of the form Y = (1 t) wH , we can conclude that it would be distortionary because it

 

When considering an income tax of the form Y = (1 t) wH , we can conclude that it would be distortionary because it will alter the relative consumptio choice. alter both the labour-leisure trade-off and the relative conumption choice. alter the labour-leisure trade-off. not be distortionary, this is a trick question.

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