Suppose the government increases lump-sum taxes. This causes: a. disposable income to decrease, which causes aggregate supply
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Suppose the government increases lump-sum taxes. This causes:
a. disposable income to decrease, which causes aggregate supply to decrease.
b. government spending to decrease, which causes aggregate demand to decrease.
c. disposable income to decrease, which causes consumer spending to decrease and aggregate demand to decrease.
d. consumption spending to decrease and spending on imports to increase, The effect on aggregate demand depends on whether domestic spending or spending on imports decreased the most.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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