A Macroeconomic Approach to Teaching Supply-Side Economics

Document Type

Article

Publication Date

7-2014

Abstract

A graphical approach shows that in order for the tax revenue to increase, following a reduction in the marginal rate, the increase of aggregate supply must be greater the lower the price level elasticity of aggregate demand.

DOI

https://doi.org/10.1080/00220485.1994.10844813

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