An Increase in the Tax Rate on Wages Results in

Multiple Choice

An increase in the tax rate on wages results in

A) both a lower equilibrium real wage and a lower equilibrium level of employment.
B) no changes in the equilibrium real wage and the equilibrium level of employment.
C) both a higher equilibrium real wage and a higher equilibrium level of employment.
D) a higher equilibrium real wage and a lower equilibrium level of employment.
E) a lower equilibrium real wage and a higher equilibrium level of employment.