A decrease in the average tax rate, with the marginal tax rate held constant, will
a. not affect the amount of labor supplied at any real wage.
b. increase the amount of labor supplied at any real wage.
c. decrease the amount of labor supplied at any real wage.
d. increase the amount of labor supplied at any real wage if the average tax rate is above the marginal tax rate, but decrease the amount of labor supplied at any real wage if the average tax rate is below the marginal tax rate.
Answer: C
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.