Enter aggregate supply - Why is there unemployment in equilibrium? - Minimum wages
3 important questions on Enter aggregate supply - Why is there unemployment in equilibrium? - Minimum wages
What is the tax wedge?
The difference between wage paid and wage costs, think taxes, social secrurity contributions ect
How does the labour supply curve shift when people become less eager to work?
Left
Why is the tax wedge never the cause of involuntary unemployment?
Because the changes in demand and supply caused by the tax wedge only makes the people quit whom choose the wages become to low
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