Macroeconomics Journal entry

Journal

• Economists argue that successful business depends on creating sustainable and effective supply and demand networks. If you own (manage) a business, how do you create effective demand and effective supply to maximize profit?
• There are pros and cons of relying on various policy instruments. Assume there is a proposal to raise tax revenue in order to make workers better off. The proposal includes raising the payroll tax paid by firms to use part of the extra revenue to reduce the payroll tax paid by workers. What are its pros and cons? Explain.

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