The debate over using government spending and taxing powers to stabilize the economy involves more than technical economic issues. Do you agree or disagree? Explain your answer. The Laffer curve,...

The debate over using government spending and taxing

powers to stabilize the economy involves more than

technical economic issues. Do you agree or disagree?

Explain your answer.

The Laffer curve, which shows (among other things)

that a tax rate reduction can increase tax revenues,

became very popular and was widely cited a couple

of years before, during, and for a few years after the

presidential election of 1980. Why do you think this

happened?