Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / When taxes decrease it is called an _________ and the aggregate demand curve shifts __________
When taxes decrease it is called an _________ and the aggregate demand curve shifts __________.
a.contractionary fiscal policy; left
b.contractionary monetary policy; left
c.expansionary monetary policy; right
d.expansionary fiscal policy; right
Correct Option D) when tax are cut the aggregate spending increase shifting to the right Reducing taxes increases disposable income helping the consumer to spend additional which thereby increasing GNP. Lowering taxes thus pushes out the aggregate demand curve to right , outward.
A) increase of tax.
B) implementation of fiscal policy.
C) reducing short term interest rate.
