An increase in taxes on labor income shifts the labor supply curve ________ and the ________.
A. leftward; after-tax wage rate falls
B. rightward; before-tax wage rate rises
C. leftward; after-tax wage rate rises
D. rightward; before-tax wage rate falls
Answer:A
An increase in taxes on labor income shifts the labor supply curve ________ and the ________.
A. leftward; after-tax wage rate falls B. rightward; before-tax wage rate rises C. leftward; after-tax wage rate rises D. rightward; before-tax wage rate falls