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Suppose That a New Invention Decreases the Marginal Productivity of Labor

question 354

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Suppose that a new invention decreases the marginal productivity of labor, shifting labor demand to the left. Such an invention would be an example of


Definitions:

After-Tax Income

The amount of net income left after all taxes have been deducted.

Consumption

The use of goods and services by households or individuals for personal or collective needs and satisfaction.

Tax Reduction

A decrease in the amount of taxes imposed by a government.

Price

The price anticipated, required, or paid in exchange for a particular item.

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