According to Supply-Side Economists, as Tax Rates Are Reduced, Labor

Multiple Choice

According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that

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