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Impact of Tax Cuts

Author: Client Uploads
April 7th, 2021

In a one-page paper address the following: 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. Use graphs and analysis to support your reasoning. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?

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