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You are the chair of the council of Economic Advisors for the State of NY. You propose a... like | dislike Question: You are the chair of the council of Economic Advisors for the State of NY. You propose a reduction in state income taxes as a way to help the local economy out of the recession. The governor (mostly concerned about tax revenue as all politicians) tells you that he is against your policy. His idea is that such a policy would generate growth, which is always inflationary and that this economy cannot bear any higher inflation rates. How do you react? Do you agree or disagree? Why? Explain your answer. Economic Advisors Economic advisors play a crucial role in the economy. It is because they have no agenda, unlike politicians. Hence, they try to frame those economic policies which benefit the economy instead of those policies which give political benefits. Answer and Explanation: I would disagree with the governor because the recession-like situations can be corrected by stimulating demand in the economy. Hence, it is necessary to reduce state income taxes in order to increase the purchasing power of people, which eventually helps in stimulating demand for goods and services. It is true that in the long-run, this might affect the inflation rate; however, when there is a recession, inflation becomes a secondary problem. Help improve Study.com. Report an Error 谢谢亲的回惠顾，期待您的下次光临！ 添加客服微信:bbwxnly，购买沟通交流so easy 欢迎咨询以下我们的一站式服务内容： Coursehero｜Scribd｜Studymode｜Oneclass｜Chegg｜Studyblue｜Termpaperwarehouse｜SolutionInn｜Bartleby｜eNotes｜Bookrags｜SaveMyEaxms｜｜Study.com｜Studypool｜and more… 谢谢亲的支持，祝您学习愉快:)