Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?
Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?
Chapter15: Fiscal Policy
Section15.3: Supply-side Fiscal Policy
Problem 1YTE
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Suppose that the compensated elasticity of labor supply with respect to the wage is zero. On efficiency grounds, what are the consequences for the optimal choice between debt and tax finance?
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