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In your groups complete the worksheet attached.

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1) Reducing direct taxes causes more incentives to work because they get to keep a higher proportion of income.

2) Lower direct taxes can increase the spending power of consumers and aggregate demand, leading to economic growth

3)lowering taxes will lead to more competition from foreign enterprises

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a) There’s a positive correlation with skill and quantity/quality, when being trained, workers are getting more skilled which then allows them to increase productivity therefore increasing quantity.

b) when workers are trained and educated, it will improve their productive capacity which also increases the output of the economy

c) If your workers in the country are trained well other companies will try to hire them thus increasing international competitiveness because these companies will have a demand for these particular workers