I NEED HELP COMPLETING THE TWO GRAPHS & FILLING IN THE CHART . DROP DOWN OPTIONS
ID: 1204382 • Letter: I
Question
I NEED HELP COMPLETING THE TWO GRAPHS & FILLING IN THE CHART. DROP DOWN OPTIONS ARE GIVEN BELOW FOR CHART (SUPPLY-SIDE POLICY & DEMAND-SIDE POLICY HAVE THE SAME DROP DOWN OPTIONS). PLEASE READ CAREFULLY & TRY TO ANSWER ALL QUESTIONS. PLEASE BE CLEAR AND ORGANIZED IN THE EXPLANATION & ANSWER FORMAT. THANK YOU VERY MUCH IN ADVANCE FOR YOUR HELP!
7. Supply-side fiscal policy Consider an economy operating below its full-employment output level. The government wants to enact a reduction in income taxes in an effort to restore the economy to full-employment output. On the graph that follows, shift one of the curves to illustrate the impact of the income tax cut on aggregate supply (AS) and aggregate demand (AD) that is emphasized by demand-side economists Tool tip: Click and drag the curve. The curve will snap into position, so if you try to move the curve and it snaps back to its original position, just try again and drag it a little farther.Explanation / Answer
Full employment is the level of employment where there is no cyclical or deficient-demand unemployment.
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Rise in consumers spending leads to reduction in the supply of labor. rise in price level leads to reduction in the GDP rate.
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