Suppose the government decides to reform the tax system to reduce the marginal income tax rate across

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Suppose the government decides to reform the tax system to reduce the marginal income tax rate across the board. Explain the effect on wages, the employment-population ratio, and unemployment.

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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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Question Posted: Feb 25, 2016 06:28 AM

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Suppose the government decides to reform the tax system to reduce the marginal income tax rate across

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A marginal tax cut increases labor supply and drives down the wage but it will increase the after ta...View the full answer

Macroeconomics

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