Question: Fiscal policy effects can be felt on the supply side as well as on the demand side of the economy. 1. Describe how lowering marginal

Fiscal policy effects can be felt on the supply side as well as on the demand side of the economy.
1. Describe how lowering marginal income tax rates will affect aggregate supply.
2. Describe the Laffer Curve, and use it to explain how lower marginal tax rates can lead to higher tax revenues.

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