- Tend to believe AS curve will determine level of inflation, unemployment and economic growth.
- To increase the economy, you take action to shift AS curve to the right. Always benefiting companies first.
- Focus on marginal tax rate.
+The amount paid on the last dollar earned or on each additional dollar.
- If they reduce marginal tax rate, you encourage more people will work longer, which they will forgo their time for income.
- Lower taxes are incentives for businesses to invest
- Lower taxes are incentives for people to increase saving -> create lower interest rate for increases in business investment.
No comments:
Post a Comment