What Is the Effect of a Change in Taxes on Aggregate

question 129

Multiple Choice

What is the effect of a change in taxes on aggregate demand?

• A)Aggregate demand would shift right if taxes increased.
• B)Aggregate demand would shift right if taxes decreased.
• C)Aggregate demand would shift left if taxes increased.
• D)Aggregate demand would shift left if taxes decreased.

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Definitions:

Investing Section

A part of the cash flow statement that shows the cash flow from all investing activities, which typically include purchases or sales of long-term assets like property, plant, and equipment.

Store Fixtures

Pieces of equipment or furniture used in a store to display products or support retail operations.

Gain on Sale

Gain on sale refers to the profit made from selling an asset for more than its book value.

Indirect Method

A method for creating the cash flow statement by modifying net income according to non-cash activities and fluctuations in working capital.