If older workers have a tax elasticity of labor supply equal to 014, by how much will their work activity decline when they reach the Social Security earnings test limit? (Recall that the Social Security earnings test limit is 50 percent. Assume explicit taxes of 20 percent below that limit. Use the midpoint method) Instructions: Enter your response as a positive percent rounded to one decimal place. Do not include a negative sign ) with your answer.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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If older workers have a tax elasticity of labor supply equai to 014, by how much will their work activity decline when they reach the
Social Security earnings test limit? (Recall that the Social Security earnings test limit is 50 percent. Assume explicit taxes of 20 percent
below that limit. Use the midpoint method.)
Instructions: Enter your response as a positive percent rounded to one decimal place. Do not include a negative sign () with your
answer.
Transcribed Image Text:If older workers have a tax elasticity of labor supply equai to 014, by how much will their work activity decline when they reach the Social Security earnings test limit? (Recall that the Social Security earnings test limit is 50 percent. Assume explicit taxes of 20 percent below that limit. Use the midpoint method.) Instructions: Enter your response as a positive percent rounded to one decimal place. Do not include a negative sign () with your answer.
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