Labor Economics. Please don't use AI. No need lengthy explanation just answer will give thumbs up 3. Suppose that everyone who works must pay taxes to the government. The required tax payment from each worker to the government is equal to 25 percent of the worker's earnings. In this situation, what is the slope of the budget line?
a) Labor force participation will decrease.
b) Labor force participation will not change.
c) The change in labor force participation is indeterminate because of conflicting substitution and income effects.
d) The change in labor force participation is indeterminate because we cannot say whether the income effect will cause labor force participation to increase or decrease.