Hi,

My question is this (for my maco hw):

Assume the economy is operating below the full employment level of output:

1. Congress votes to decrease business taxes on all small businesses in the United States. Using a correctly drawn AD/AS graph, show and explain how this change will affect each of the following in the short-run:

Output

Price level

2. Using a correctly drawn and labeled Phillips curve, show and explain how this policy will affect each of the following as the economy approaches a new equilibrium

the Phillips curve

the natural rate of unemployment

Thanks!