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franklynvaldez01
franklynvaldez01
24.04.2020 • 
Business

In his book The Optimum Quantity of Money​, Milton Friedman talks about a helicopter dropping​ $2,000 over a community. The cash dropped by the helicopter gives the people in this community more money to spend. A tax cut also has the same​ effect: it increases disposable income. Suppose tax​ cuts, analogous to the helicopter​ drop, were proposed as a method to shift the labor demand curve to the right following a recession.

How effective do you think this policy would​ be?

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