Assume that higher taxes discourage people from working, Ask an Expert

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Assume that higher taxes discourage people from working. Further assume that the SRAS is upward sloping because of the Imperfect-Information theory. a) Imagine there is a tax cut. What would be the impact on the AD, SRAS and LRAS curves? b) What is the short-run impact on output and the price level? How does your answer differ from the case without a labor-supply effect?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91678186

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