Homework Help: macroeconomics

Posted by Mel on Monday, May 5, 2008 at 2:51pm.

with the level of government spending given, why might an increase in the tax rate cause an increase in the budget deficit?

macroeconomics - economyst, Tuesday, May 6, 2008 at 8:56am
Here is a link to an explanation of the Laffer curve. Google Laffer Curve for more info.

http://en.wikipedia.org/wiki/Laffer_curve

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