A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and _

Question

Juliette [100K]

3 years ago

14

A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and _

_______ the size of the multiplier effect.

Business

1 answer:

Paha777 [63] · Answer 1 · 2022-06-09T09:42:30+03:00

Answer:

increases; increases

Explanation:

A cut in tax rate has numerous advantages and disadvantage to the economy both in long-run and short-run. A cut in tax rates increases the discretionary cash flow of people, which drives them to expand their utilisation spending. A cut in charge rates increment the size of the multiplier impact

A cut in tax rates effects equilibrium real GDP through two​ channels: ________ disposable income and consumer​ spending, and​ _

A cut in tax rates effects equilibrium real GDP through two channels: ________ disposable income and consumer spending, and _