Suppose the income tax rate increases. What will happen to consumption, investment, and net exports in the short run and the long run? Explain your results, using a diagram with the aggregate demand curve and the inflation adjustment line.

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The Answer of Suppose the income tax rate increases. What will happen to consumption, investment, and net exports in the short run and the long run? Explain your results, using a diagram with the aggregate demand curve and the inflation adjustment line.

Suppose the Income Tax Rate Increases