Tax cutting affect the economy
How does tax cuts affect the economy?
Expert
Tax cuts improve the economy by providing the people higher consumer confidence and more spending power, which leads to them spending more of all of their income which leads to more jobs, more business investment in more efficient technologies, and ultimately higher GDP growth.
In this kinked demand curve model as in given graph, when this firm operated at point a and lowered its price by P2 to P1 and other firms in the industry also lower prices, in that case this firm will move from point a to: (w) po
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‘State the economic arguments on whether big cities which have congested roads must charge a road tax?’
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