https://padlet.com/kmatthew6_1/xf8nd15akqkkcdp2 en-us 2022-09-02 01:31:04 UTC 2022-09-02 04:13:30 UTC hello@padlet.com kmatthew6_1 https://padlet.com/kmatthew6_1/xf8nd15akqkkcdp2/wish/2280087599 INSTRUCTIONS
read this news and consider how consumers and firms are reacting to the change in tax

write down your thoughts, observations and questions on all or some of the following prompts;

a) how does economy change behaviour in the circular flow of income?
b) how can tax influence the whole economy?
c) are some types of tax more influential than other taxes?
d) why do governments tax?
e) is tax always the 'best' way to influence the economy?]]> 2022-09-02 01:39:14 UTC https://padlet.com/kmatthew6_1/xf8nd15akqkkcdp2/wish/2280087599 https://padlet.com/kmatthew6_1/xf8nd15akqkkcdp2/wish/2280255099 A) If the economy raises tax, households consume less on buying goods and services, leading to the less income returning to businesses. Households working as employees in such businesses earn less profit to spend. 

B) AD will decrease as consumer spending, which takes the largest portion of the formula, decreases. 

D) The article mentions "other African governments, reeling from the economic hardships of the Covid-19 pandemic and now facing the fallout from the Russia-Ukraine crisis, could turn to an e-levy to raise more money, despite the impact on some citizens." So the governments would tax to earn more revenue to spend in infrastructure and other national politics/economic activities. 

E) No, because as the article showed, if the tax increases, consumers spend less money on goods and services (e-levy in this article), and it concerns the traders/workers in such businesses that they will have less consumers who pay for their service. ]]> 2022-09-02 04:13:29 UTC https://padlet.com/kmatthew6_1/xf8nd15akqkkcdp2/wish/2280255099