RHC You Are the Economist the Laffer Curve Discussion Questions
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QUESTION 1
Prompt: Read “YOU’RE THE ECONOMIST: Was John Maynard Keynes Right?” in Chapter 20. Was Keynes correct? Based on data in the sidebar, use the aggregate demand and aggregate supply model to explain Keynes’s theory that increases in aggregate demand propel an economy toward full employment.
QUESTION 2
Prompt: Read “YOU’RE THE ECONOMIST: The Laffer Curve” in Chapter 21. After reading the case, compare the common perception of how a tax rate cut affects tax revenues with economist Laffer’s theory.
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