Macroeconomics + Economy 2009 Update 18th Edition by Campbell McConnell, Sean Masaki Flynn,Stanley Brue

Exercise 12

LAST WORD Suppose that a tax cut involves two alternative schemes: ( a ) a $2 tax cut or tax rebate for each of the 10 people in the breakfast club, or ( b ) a tax savings for each of the 10 in proportion to their previous bill. If the two schemes were put to a majority vote, which do you think would win According to supply-side economists, why might that voting outcome be shortsighted Why might this tax anecdote be more relevant to an individual state than to the Federal government