Question
Assume that in the simple closed economy, income tax only influences the economy through its impact on household consumption. Describe and show graphically how a
Assume that in the simple closed economy, income tax only influences the economy through its impact on household consumption. Describe and show graphically how a reduction in income tax (t0) can be used to stimulate the demand side of the economy.
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
