Corporate Tax Rate

The AD-AS model can be used to analyze the effects of fiscal policy, including changes in government spending or taxes. Suppose Congress votes to decrease corporate income tax rates. Use the AD/AS model to analyze the likely impact of the tax cuts on the macroeconomy. Show graphically and explain your reasoning for both Keynesian and Neoclassical perspectives. What exactly causes AD and/or AS to shift? What happens to GDP and the aggregate price level? Why?

Criteria    Not Evident    Developing    Proficient    Distinguished    Weight
Explain the Keynesian perspective on tax cuts and show graphically. See also for more details.

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Explain the Neoclassical Perspective on tax cuts and show graphically.                    4
Explain the effect of tax cuts on GDP.  Show graphically.                    4
Explain the effect of tax cuts on the price level.  Show graphically.                    4
Write up your analysis using correct language, explaining all your work.                    4

also if you get this instructions please write in your own words my professor is very strict and won’t take too much internet source.

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