The correct answer is:
short-run aggregate supply curve to the left.
Raising business taxes increases the cost of production for firms, leading to a decrease in supply in the short run, which shifts the short-run aggregate supply curve to the left.
Multiple Choice Question
Raising business taxes shift the Blank______.
Multiple choice question.
long-run aggregate supply curve to the left
aggregate demand curve to the left
short-run aggregate supply curve to the right
aggregate demand curve to the right
1 answer