⢠Identify and describe the effect of changing the tax rate ondisposable income and consumption, as well as the post-taxmultiplier. You should use the formulas discussed in the Readingpages and the text to describe the effects of the changing tax rateon disposable income, consumption, and the multiplier.
⢠Describe the likely changes to equilibrium output and pricelevels resulting from the change in the tax rates. Begin bydescribing the effects on aggregate supply and/or demand to fullydemonstrate the connection between the tax rate change andequilibrium.
⢠Describe the change in tax revenues for the government in the newequilibrium, in both the short and longer terms.
⢠Identify and describe the effect of changing the tax rate ondisposable income and consumption, as well as the post-taxmultiplier. You should use the formulas discussed in the Readingpages and the text to describe the effects of the changing tax rateon disposable income, consumption, and the multiplier.
⢠Describe the likely changes to equilibrium output and pricelevels resulting from the change in the tax rates. Begin bydescribing the effects on aggregate supply and/or demand to fullydemonstrate the connection between the tax rate change andequilibrium.
⢠Describe the change in tax revenues for the government in the newequilibrium, in both the short and longer terms.
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