Suppose households supply 560 billion hours of labor per year and have a tax elasticity of supply
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Suppose households supply 560 billion hours of labor per year and have a tax elasticity of supply of 0.15. If the tax rate is increased by 10 percent, by how many hours will the supply of labor decline?
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84 billion labor hours Feedback The tax elasticity of supply is calculated as follows Substitute th...View the full answer
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Related Book For
The Macro Economy Today
ISBN: 978-1259291821
14th edition
Authors: Bradley R. Schiller, Karen Gebhardt
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