Taxes tend to
A)rise and so shift aggregate demand right during recessions.
B)rise and so shift aggregate demand left during recessions.
C)fall and so shift aggregate demand right during recessions.
D)fall and so shift aggregate demand left during recessions.

Question

Quizplus · Accepted Answer

During recessions, governments often reduce taxes to increase disposable income, encouraging spending and investment, which shifts aggregate demand to the right.

Taxes Tend to