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According to new classical economists the reason that a tax cut does not shift the aggregate demand curve is: households increase their consumption and can
According to new classical economists the reason that a tax cut does not shift the aggregate demand curve is:
- households increase their consumption and can pay higher taxes in the future.
- real GDP does not chance because prices are inflexible.
- consumers anticipate the effect of an increase in government debt on future taxes.
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
