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True [87]
2 years ago
12

How can a reduction in taxation be used to influence aggregate demand​

Business
1 answer:
MA_775_DIABLO [31]2 years ago
8 0

Answer:

shifting the aggregate demand curve to the right.

Explanation:

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According to the principles of supply and demand,  the price of a product increases, the amount supplied will also increase because there is positive relationship between price and quantity supplied.

<h3>Why when price increases supply also increases?</h3>

Economists States that there is a positive relationship between price and quantity supplied—that means a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied.

Principle of supply states that at a higher price, a producer is willing to produce more of a good.

Principle of demand states that at a higher price, a consumer is less willing to purchase a good.

Learn more about the principles of supply and demand here:-

brainly.com/question/1967319

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