Macroeconomics 11th Edition by Michael Parkin

تمرين 11

Use the following news clip and fact to work the Problem
Senate Approves Obama Tax Cut Plan
The U.S. Senate has passed legislation extending Bush-era tax cuts for middle-class Americans earning up to $250,000 per year.
Fact : Middle and low-income earners spend almost all their disposable incomes. High-income earners save a significant part of their disposable incomes.
Explain whether a stimulus package centered around a one-time consumer tax rebate is likely to have a small or a large supply-side effect.