Raising taxes shifts the _____ curve to the _____.
A) aggregate demand; left
B) long-run aggregate supply; left
C) aggregate demand; right
D) short-run aggregate supply; left

Question

Quizplus · Accepted Answer

Raising taxes reduces consumers' disposable income, leading to a decrease in consumer spending. This decrease in spending reduces the overall demand for goods and services in the economy, which is represented by a leftward shift of the aggregate demand curve.

Raising Taxes Shifts the _____ Curve to the _____

Raising Taxes Shifts the _ Curve to the _