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The government is considering raising the tax rate on labour income and asks you to report...

The government is considering raising the tax rate on labour income and asks you to report on the supply-side effects of such an action. Answer the following questions using appropriate graphs. You are being asked about directions of change, not exact magnitudes. What will happen to:
a. The supply of labour and why?
b. The demand for labour and why?
c. The equilibrium level of employment and why?
d. The equilibrium after tax wage rate and why?
e. Potential GDP?

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