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    Exam 5: A Closed-Economy One-Period Macroeconomic Model
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    The Presence of a Distorting Tax on Wage Income Can
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The Presence of a Distorting Tax on Wage Income Can

Question 37

Question 37

Multiple Choice

The presence of a distorting tax on wage income can result in


A) MPN < MRTL,C.
B) MRTL,C < MRSL,C.
C) MRSL,C < MPN.
D) MPn < w.
E) MRSL,C = MPN.

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