Unformatted text preview: taxes [taxes minus transfers] More early retirements => smaller labor force => reduced potential GDP, LAS , SAS Increase in net taxes => lower disposable income => less consumption expenditure, AD 3. The appearance and rapid spread of new epidemic viral diseases result in much lower incomes abroad and a decrease in US productivity. Lower income abroad => smaller eXports, AD Decrease in US productivity force => reduced potential GDP, LAS , SAS...
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- Spring '05
- tax cut, disposable income increases, early retirements