sometimes fiscal policies, such as changes in tax rates, may affect individuals incentives to supply labor in an economy. because of this , there may be an unintended effect called

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Kaisyn3024 Kaisyn3024

02-12-2021
Business

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sometimes fiscal policies, such as changes in tax rates, may affect individuals incentives to supply labor in an economy. because of this , there may be an unintended effect called

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Tundexi Tundexi · Answer 1 · 2021-12-14T13:00:22+01:00

Since the changes in tax rates affect some individuals incentives to supply labor in an economy, there may be an unintended effect called Feedback effect of aggregate supply

The feedback effect happens when the short sales increase the supply of shares, thus, depressing the price, weakening the firm and driving the price down even further.

In conclusion, because of the situation, there there may be an unintended effect called Feedback effect of aggregate supply