Decreasing corporation tax

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iduwari
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#1
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#1
could anyone help me to do these questions?
how Decreasing corporation tax can affect Aggregate supply? and problems with this policy?
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TSR Jessica
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#2
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Sorry you've not had any responses about this. Are you sure you've posted in the right place? Here's a link to our subject forum which should help get you more responses if you post there.


Just quoting in Danny Dorito so she can move the thread if needed :wizard:
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Madasser456
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#3
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I do economics, Reducing corporation tax will increase the amount of profits a firm has which acts as an incentive for firms to increase investment or hire more workers. Increasing investment will lead to firms purchasing more capital goods. This increases long run aggregate supply because capital goods are a factor of production. Workers are factor of production so increasing workers , increases productive potential of the economy and leads to an increase in long run aggregate supply.

Hope ive helped
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iduwari
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(Original post by Madasser456)
I do economics, Reducing corporation tax will increase the amount of profits a firm has which acts as an incentive for firms to increase investment or hire more workers. Increasing investment will lead to firms purchasing more capital goods. This increases long run aggregate supply because capital goods are a factor of production. Workers are factor of production so increasing workers , increases productive potential of the economy and leads to an increase in long run aggregate supply.

Hope ive helped
thank u so much
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username2808800
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(Original post by iduwari)
thank u so much
May want to mention the laffer curve
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iduwari
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#6
(Original post by fleky6910)
May want to mention the laffer curve
i don't know about laffer curve?
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username2808800
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(Original post by iduwari)
i don't know about laffer curve?
You in year 12?
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iduwari
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#8
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(Original post by fleky6910)
You in year 12?
yes but i never learn about laffer curve?
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username2808800
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#9
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(Original post by iduwari)
yes but i never learn about laffer curve?
http://www.investopedia.com/terms/l/laffercurve.asp
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iduwari
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#10
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#10
i looked at the link, but i dont think it will come to the exam?
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username2808800
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#11
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(Original post by iduwari)
i looked at the link, but i dont think it will come to the exam?
I am in year 11, check your A-level specification.( My economics teacher said it was on A level)
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iduwari
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#12
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i checked it, it was in our specification
but they didn't teach that lesson yet.
thanks
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username2808800
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#13
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(Original post by iduwari)
i checked it, it was in our specification
but they didn't teach that lesson yet.
thanks
np.
I am doing GCSE this year, did you do GCSE?
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iduwari
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#14
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#14
(Original post by fleky6910)
np.
I am doing GCSE this year, did you do GCSE?
actually i didn't do Economics for my GCSE?
Sry
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