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n200080 [17]
3 years ago
5

When taxes increase, consumptiona. decreases, so aggregate demand shifts left. b. increases, so aggregate demand shifts right. c

. decreases, so aggregate supply shifts left. d. increases, so aggregate supply shifts right.

Business
1 answer:
LenKa [72]3 years ago
7 0

Answer:

a. decreases, so aggregate demand shifts left. 

Explanation:

When tax is increased, disposable income reduces and therefore consumption falls. The fall in consumption shifts the aggregate demand curve to the left.

I hope my answer helps you.

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