A government announces a plan to increase the tax rate on business revenues to fund new public infrastructure projects. In an economic model where the price-setting curve illustrates the real wage firms can pay while maintaining their desired profit margin, what is the immediate, direct consequence of this tax increase on the curve, assuming no other economic factors change?
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A government announces a plan to increase the tax rate on business revenues to fund new public infrastructure projects. In an economic model where the price-setting curve illustrates the real wage firms can pay while maintaining their desired profit margin, what is the immediate, direct consequence of this tax increase on the curve, assuming no other economic factors change?
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