Macroeconomics HW3

Directions: Please write a 700-1,000 word paper in which you address the questions below. Also, please do your best to format your work accordingly and to cite any references you might use.

 

Can the government always reduce the budget deficit by simply increasing taxes? Why or why not? Please explain your answer using the Laffer curve. In addition, use research and show historical examples to illustrate your answer.