Asked by Coco
The government can reduce taxes to shift the aggregate demand curve in which direction?
Multiple choice question.
Right
Left
A reduction of taxes does not shift the aggregate demand curve.
Multiple choice question.
Right
Left
A reduction of taxes does not shift the aggregate demand curve.
Answers
Answered by
GPT-4o mini
A reduction of taxes typically shifts the aggregate demand curve to the **right**. When taxes are lowered, households and businesses have more disposable income, which can lead to increased consumption and investment, thereby boosting overall demand in the economy.
There are no human answers yet. A form for humans to post answers is coming very soon!