Why would a reduction in tax rates that was anticipated to be only temporary not cause nearly as large a supply-side response as one that was expected to be permanent? Does the same logic hold for how long other parts of the existing ground rules (e.g., regulations) will remain as they are now?
Why would a reduction in tax rates that was anticipated to be only temporary not cause nearly as large a supply-side response as one that was expected to be permanent? Does the same logic hold for how long other parts of the existing ground rules (e.g., regulations) will remain as they are now?
Chapter24: Fiscal Policy
Section: Chapter Questions
Problem 10P
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