If you are the chair of the council of Economic Advisors for the State of CA. Yo

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If you are the chair of the council of Economic Advisors for the State of CA. Yo

If you are the chair of the council of Economic Advisors for the State of CA. 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.

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