Top Posters
Since Sunday
w
5
a
3
j
2
a
2
t
2
u
2
r
2
j
2
j
2
l
2
d
2
y
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
KeeBeeUtiful KeeBeeUtiful
wrote...
Go to Answer
Posts: 271
Rep: 1 0
5 years ago
Employers in a city must pay a specific tax of $t per hour worked by their employees while employers in the suburbs of the city do not have an employment tax. What does a general equilibrium approach predict regarding the wages and employment of both the city and suburban workers if the city decides to substantially reduce their employment tax rate?
A) Wages will increase in the city, but not in the suburbs, and employment will increase in both.
B) Wages will increase in both the city and the suburbs, but employment will fall in both.
C) Wages will increase in both the city and suburbs, employment will increase in the city, but decrease in the suburbs.
D) Wages will increase in both the city and the suburbs, employment will decrease in the city, but increase in the suburbs.
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 77 times
1 Reply
Replies
Answer verified by a subject expert
chenandrew1219chenandrew1219
wrote...
#1
Posts: 211
Rep: 182 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here

Related Topics

KeeBeeUtiful Author
wrote...

5 years ago
this is exactly what I needed
Tabitha.davis
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
smi3
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1324 People Browsing
 221 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1359
  
 339
  
 596