Use the interactive tool to find the sum -2/5 + 1/2
1 answer:
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Answer:
E. increases; shifts the AD curve rightward
Step-by-step explanation:
Tax cut means lower tax income tax rates, that mean individuals will have more of their income, that is more money to spend leading to increase in aggregate demand. This will lead to a rise (increase) in the aggregate demand curve which implies rightward movement.
