Week #2 Examine The Great Depression of 2008

Instructions
In 2017, the Federal Income Tax and Jobs Act passed reduced the corporate income tax for U.S. operations from 44% to 21% and, for most individuals, reduced the taxes owed in 2018 from the amount owed in the prior year. Beginning in 2017 and continuing in 2018, the rate of quarterly growth in GNP changes from 2% or less in the 3 prior years to more than 3% in 2017 and 2018. Nationally, incomes have been increasing, part of which is perceived to be attributable to the reduction in U.S. corporate income taxes.

For this assignment, create a PowerPoint presentation in which you define each component of the GNP and NI equations, and then explain how each of the GDP variables is influenced by the Federal Income Tax Act of 2017.

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Include speaker notes on each slide as if you were actually delivering a presentation. Alternatively, you can record your voice on the PowerPoint or Kaltura Capture. These resources can be viewed in this week’s Books and Resources folder. Be sure to cover the following points in your paper:

Define the components of each variable in the GNP spending, or demand equation (i.e., C, I, G, & X- M). Explain how each of these variables is estimated. Explain how changes in each of the variables are influenced by changes in governmental income tax policies.
Define the components of each variable in the NI (national income) equation (W, T, and S). Explain how each of these variables is estimated. Explain how governmental changes in the income tax rate influence the value of the other two variables. What does an increase in wages with a resulting decrease in income taxes likely mean for Consumer Spending (C) and Business Investments (I)?
Research and plot on a graph the U.S. private, unemployment rates by quarters for 2016, 2017, and 2018. Explain how the reductions in tax rates introduced by the 2017 Federal Tax Act of 2017 likely contributed to the continued reduction in unemployment for 2018 Quarters.
Research and plot on a graph the corporate profits reported in the U.S. for each of the quarters in 2016, 2017, and 2018. Explain how corporate profits were likely positively influenced in growth by the Federal Tax Act of 2017 during 2018.

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