team_PLEASE
Rookie
- Dec 29, 2017
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Is the following argument about how corporate tax cuts will lead to greater wages for workers logical?
Is there anything (else) wrong with the argument presented?
Corporate tax cuts --> more companies willing to provide goods at lower prices in order to gain competitive edge --> shift supply curve (of goods) to the right --> equilibrium price of goods 'moves' to the right --> more demand of goods --> companies need to hire more workers to keep up with demand --> demand curve (of labor) shifts to right --> equilibrium price (of labor) shifts upward and to the right, resulting in an increase in wages.
Does simply moving the equilibrium price of goods (without actually shifting the demand curve) indicate a change in demand that would result in companies hiring more workers?
Is there anything (else) wrong with the argument presented?
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