Distortionary effects of taxes in the economy


Which of the following describe the rising distortionary effects of taxes in the economy:

A. the price-setting curve shifts downwards.

B. the wage-setting curve shifts rightwards.

C. an increase in the proportional tax wedge.

D. an increase in the natural rate of unemployment.

E. all of the above

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Macroeconomics: Distortionary effects of taxes in the economy
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