Lower taxes on businesses will shift the aggregate:
A) demand curve rightward.
B) demand curve leftward.
C) supply curve rightward.
D) supply curve leftward.

Question

Quizplus · Accepted Answer

Lower taxes on businesses will decrease the costs of production for businesses, which will incentivize them to produce more. This will lead to an increase in the supply of goods and services, and therefore a rightward shift in the aggregate supply curve.

Lower Taxes on Businesses Will Shift the Aggregate