We'll give new tax credits to businesses that hire and invest."   g) Discuss the effects of tax credits on businesses that hire on employment, the wage firms pay, w, and the wage that workers receive, we, using the labor market diagram. (Hint: Note that the cut in taxes on firms has the the same economic effects of a cut in taxes on the income of workers. Recall from last semester that the economic incidence of a tax is not related to the legal/statutory incidence of the tax.)

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