Impact of Lower Corporate Tax Rate

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. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?

Submission Requirements:
The discussion grade will be based on how thorough and detailed your posts are.
Your initial post must be published first, should be substantial, and answer the question(s) in detail.
You must post at least TWO replies to other students’ posts.
Your replies must be a minimum of 5 sentences long and, again, must be meaningful and detailed.
Proofread the content of your posts before making them public. Proper grammar and sentence structure are expected.


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