How Does the Aggregate Demand and Supply Model Reflect a Decrease

question 175

Multiple Choice

How does the aggregate demand and supply model reflect a decrease in taxes?

• A) Consumption increases,so aggregate demand shifts right.
• B) Consumption increases,so aggregate supply shifts right.
• C) Consumption decreases,so aggregate demand shifts left.
• D) Consumption decreases,so aggregate supply shifts left.

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Definitions:

Liquidation

The process of converting a company's assets into cash to pay off creditors before dissolving the company.

Involuntary

Occurring without a person's consent or control, often referring to actions or processes not chosen or intended.

Bankruptcy Estate

The assets that are collected from a debtor who files for bankruptcy.

Collective Bargaining Agreement

A written contract between an employer and a labor union representing a group of employees, outlining the terms of employment.