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December 3, 2021

m11 assigmment: economic impact of lower corporate tax rate

Business and Management, Undergraduate

The AD-AS model can be used to analyze the effects of fiscal policy, including changes in government spending or taxes. 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. Show graphically and explain your reasoning for both Keynesian and Neoclassical perspectives. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?

Rubric
Criteria Not Evident Developing Proficient Distinguished Weight
Explain the Keynesian perspective on tax cuts and show graphically. 4

Explain the Neoclassical Perspective on tax cuts and show graphically.                    4
Explain the effect of tax cuts on GDP. Show graphically.                    4
Explain the effect of tax cuts on the price level. Show graphically.                    4
Write up your analysis using correct language, explaining all your work.                    4

also if you get this instructions please write in your own words my professor is very strict and won’t take too much internet source.

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