Anticipating a tax cut

Please help me with the attached question.

One page total (including graphs).
Suppose you anticipate that the “Bush tax cuts” on capital gains and income will be reversed next year (or, more accurately, be allowed to expire). You believe the higher capital gains taxes will have a negative impact on capital formation.
Depict on the classical model (not Keynesian) the impact this will have on Aggregate Supply. Make sure you explain each change on the graph. Given your analysis what impact will this have on inflation if the FED continues its current monetary policy (i.e. keeps the Federal Funds rate relatively low).

The answer is pretty much the opposite of this answer below.
Bush’s 2003 Tax Act’s provisions lowered the rates on long-term capital gains to 15% for taxpayers in the 25% bracket or higher and lowered the 10% rate to 5% for individuals in the 10% and 15% tax brackets, effective from May 6, 2003, through December 31, 2008. The proponents of tax cut polices argued that capital gains tax cuts boosted the economy and increased federal revenues. (i.e During these years, tax receipts has surged.) This has led to an increase in capital gains receipts resulting from higher capital gains realizations. Ultimately, increase in capital has led to enormous growth in the stock market that has occurred since 2003.
One of the important arguments by the Congress for reducing the capital gain tax rates was to stimulate consumer spending. The supply side economists argued that capital gains tax cuts motivate the people to start their own business.

However, capital gains tax cuts was also criticized on the grounds that the tax reductions are only temporary. They may raise the tax receipts initially but lose a larger amount of revenue in the long run. Capital gains tax cuts induce stock sales, but this will cause downward pressure on stock prices in the market. Besides, the opponents argued that the savings from the capital gains tax cut would be concentrated among higher-income individuals, and as a result the savings were less likely to be spent and would produce only a small economic stimulus.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentHelpWeb
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
excellent loved the services
Customer 452443, September 23rd, 2022
Business Studies
Thank you!
Customer 452451, November 27th, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Business Studies
Excellent service - thank you!
Customer 452469, February 20th, 2023
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Public Administration
Excellent timely work
Customer 452451, April 19th, 2023
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat