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Unformatted text preview: levels with the payroll tax as well as those you found in (a). What is the effect of the tax on the wage rate and employment level? (c) In your graph in (b) label all relevant sections of the graph (for example a, b, c, etc.) and fill out the following table showing the welfare effects of the tax on society. No-Tax (Before) With Tax (After) Firm surplus Worker surplus Government Revenue Social Surplus (Total Gains from Trade) Deadweight Loss...
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This note was uploaded on 12/06/2010 for the course ECON 4616 taught by Professor Antman during the Fall '08 term at Colorado.
- Fall '08