Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?

A. There is no income effect when tax rates are changed
B. The income effect of a wage change is greater than the substitution effect of a wage change.
C. There is no substitution effect when tax rates are changed
D. The substitution effect of a wage change is greater than the income effect of a wage change