Question
Multiple Choice Question
Raising business taxes shift the Blank______.
Multiple choice question.
aggregate demand curve to the left
long-run aggregate supply curve to the left
short-run aggregate supply curve to the right
aggregate demand curve to the right
Raising business taxes shift the Blank______.
Multiple choice question.
aggregate demand curve to the left
long-run aggregate supply curve to the left
short-run aggregate supply curve to the right
aggregate demand curve to the right
Answers
GPT-4o mini
Raising business taxes shifts the **short-run aggregate supply curve to the left**.
Higher taxes on businesses increase their costs, which can lead to a decrease in the quantity of goods and services supplied at any given price level, thereby shifting the short-run aggregate supply curve leftward.
Higher taxes on businesses increase their costs, which can lead to a decrease in the quantity of goods and services supplied at any given price level, thereby shifting the short-run aggregate supply curve leftward.