63 146
Assignments Done
99,1%
Successfully Done
In July 2018

Answer to Question #70710 in Macroeconomics for john

Question #70710
Suppose Korea's new government increased VAT by 5% point. Explain the effect of tax increase using a D and S curves. Show how would this D and S change result in IS-LM analysis.
Expert's answer
If Korea's new government increased VAT by 5% point, then the tax increase will cause the decrease in supply, so the S curve will shift to the left causing increase in equilibrium price and decrease in equilibrium quantity.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions