2. Standard economic models of corporate investment, output, labor productivity, and wages predicted that the corporate income tax cut in TCJA would have only a small effect on GDP growth and a small effect on growth in average US wages (estimated variation less than one half percent according to Smetters, 2018) during the first three years of the reform (2018, 2019 and 2020).

a.Use data fromhttps://fred.stlouisfed.org/to compare average US wage growth during 2018 and 2019 to average wage growth during the period from 2012 to 2016.