Question: Consider your decision about how many hours to work. a. Draw your budget constraint assuming that you pay no taxes on your income. On the

Consider your decision about how many hours to work.

a. Draw your budget constraint assuming that you pay no taxes on your income. On the same diagram, draw another budget constraint assuming that you pay 15 percent tax.

b. Show how the tax might lead to more hours of work, fewer hours, or the same number of hours. Explain.

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