If There Is an Income Tax Levied on Labor Income,the

question 249

Multiple Choice

If there is an income tax levied on labor income,the labor demand curve ________ and the labor supply curve ________.

• A) shifts rightward; does not shift
• B) shifts leftward; does not shift
• C) does not shift; shifts rightward
• D) does not shift; shifts leftward
• E) shifts leftward; shifts leftward