If people want to save more for retirement
A)or if the government raises taxes, aggregate demand shifts right.
B)or if the government raises taxes, aggregate demand shifts left.
C)aggregate demand shifts right.If the government raises taxes, aggregate demand shifts left.
D)aggregate demand shifts left.If the government raises taxes, aggregate demand shifts right.

Question

Quizplus · Accepted Answer

If people save more, they spend less, reducing consumption and shifting aggregate demand left. Higher taxes also reduce disposable income, further shifting aggregate demand left.

If People Want to Save More for Retirement