In the Classical Model,and Increase in Tax on Firms That

question 20

Multiple Choice

In the classical model,and increase in tax on firms that hired labor would

• A)decrease labor demand and the real wage and increase output.
• B)decrease labor supply,increase the real wage,and decrease output.
• C)decrease labor demand,decrease the real wage,and decrease output.
• D)reduce real wages and increase output.

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Definitions:

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The set of shared assumptions, values, and practices that characterize an organization and guide its members' behavior.

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The fundamental truth or basis that exists beneath and supports observable phenomena or statements.

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