13.23: Discussion: Economic Impact of Lower Corporate Tax Rate
- Page ID
- 84619
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Suppose Congress votes to decrease corporate income tax rates. Use the AD/AS model to analyze the likely impact of the tax cuts on the macroeconomy. Show graphically and explain your reasoning. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?
CC licensed content, Original
- Discussion: Economic Impact of Lower Corporate Tax Rate. Authored by: Steve Greenlaw and Lumen Learning. License: CC BY: Attribution