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    Exam 3: Classical Macroeconomics I: Output and Employment
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    Suppose That the Government Imposes a Tax on Firms for Money
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Suppose That the Government Imposes a Tax on Firms for Money

Question 13

Question 13

Essay

Suppose that the government imposes a tax on firms for money wages they pay.How would this change the classical aggregate supply curve? Why?

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The tax would effectively increase the m...

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