An increase in income taxes reduces disposable personal income and thus reduces consumption (but by less than the change in disposable personal income).
That shifts the aggregate demand curve leftward by an amount equal to the initial change in consumption that the change in income taxes produces times the multiplier.
<h3>How do higher taxes affect aggregate demand?</h3>
In the model of aggregate demand and aggregate supply, a tax rate increase will shift the aggregate demand curve to the left by an amount equal to the initial change in aggregate expenditures induced by the tax rate boost times the new value of the multiplier.
Learn more about income taxes here:
<h3>
brainly.com/question/26316390</h3><h3 /><h3>#SPJ4</h3>
Answer:
the amount specified is reasonable and actual damages are difficult to determine.
Explanation:
Liquidated damages provision is a contract that is drawn up between parties in a transaction. It defines the damages that will be paid by a party for non performance in a contractual agreement.
The liquidated damages provision is enforceable when a contract is breached and it is difficult to determine the amount of actual damage done. The next option will be to use the stated amount in the contract so far it is reasonable.
the awnser to the problem is true.
Answer:
Elastic
A drought in Kansas would significantly raise the worldwide price of grain
Explanation:
Elastic demand means that quantity demanded is sensitive to price changes. If there's a small change in price, there's a greater change in quantity demanded.
If there's a drought in kansas, the amount of grains produced would fall. This would make grains scarce and increase the price of grain. If the elasticity of demand for grain is elastic, the price increase would lead to a reduction in quantity demanded. As a result, the revenue received by farmers would fall.
I hope my answer helps you
