1) One supply-side measure introduced by the ReaganAdministration was a cut in i
ID: 1234561 • Letter: 1
Question
1) One supply-side measure introduced by the ReaganAdministration was a cut in income tax rates. Use an aggregatedemand/aggregate supply diagram to show what effect was intended.What might happen if such a tax cut also shifted the aggregatedemand curve? 2) Do you think the September 11, 2001 attacks on the WorldTrade Center and the Pentagon affected shofrt and/or long-termproductivity in the United States? 3) What are some examples of technological change that hascaused unemployment? What are some examples of new technologiesthat have created jobs? How do you think you might measure the netimpact of technological change on overall employment and GDP in theUnited States? Thank you for helping. 1) One supply-side measure introduced by the ReaganAdministration was a cut in income tax rates. Use an aggregatedemand/aggregate supply diagram to show what effect was intended.What might happen if such a tax cut also shifted the aggregatedemand curve? 2) Do you think the September 11, 2001 attacks on the WorldTrade Center and the Pentagon affected shofrt and/or long-termproductivity in the United States? 3) What are some examples of technological change that hascaused unemployment? What are some examples of new technologiesthat have created jobs? How do you think you might measure the netimpact of technological change on overall employment and GDP in theUnited States? Thank you for helping.Explanation / Answer
1) Not sure off the top of my head. Give me some time and Ican get you the answer (or someone else can). 2) Is an opinionated question. What is your opinion, notmine. I have an opinion, but it wouldn't be yours. Think about it this way. Did it affect how things were doneright then and there? Flights stopped, trade decreased,etc. So yes, there was a short run impact, but did it affectproductivity? Your opinion. What affects long-termproductivity? Change in resources (capital and human) andtechnology. Was there a change in any of these, if so, therewas a long-term productivity change. What's youropinion. I can help point you in a direction, you must decidethe rest. 3) With computers, the concept of Travelocity, Priceline, etc haveemerged. You book your own flight, hotel, car rental, andsometimes even plan the whole trip out all on this one site. What happened to your local travel agents? It's a dieingmarket now. What about your door-to-door salespeople? With access to websites like Amazon.com and Ebay.com, why do weneed them anymore? Also, you have all your IT jobs that,until recently, didn't exist. So technology goes bothwas. A decent measure is to hold our changes in resourcesconstant and see if our overall production posibilities haschanged. Since productivity is changed by only resources andtechnology, if one is held constant, we can see the affects of thechanges in technology.
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