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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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Question Posted: May 30, 2018 03:32 AM

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Suppose households supply 560 billion hours of labor per year and have a tax elasticity of supply

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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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