Refer to the Following Figure When Answering
Figure $b \rightarrow a$

Multiple Choice

Refer to the following figure when answering
Figure 15.1: The Labor Market
-Consider Figure 15.1, which is a representation of the labor market. In 2008, China reduced its corporate tax rate from 33 percent to 25 percent; this would cause a shift from curve ________ because changes in taxes ________ in the stylized DSGE model.

A) $b \rightarrow a$ ; are similar to a change in TFP
B) $c \rightarrow d$ ; are the opposite of a change in income taxes
C) $a \rightarrow b$ ; are identical to a change in income taxes
D) $d \rightarrow c$ ; negatively affected by TFP
E) None of these answers are correct.