Question

When taxes decrease, consumption Group of answer choices increases, so aggregate demand shifts right. increases, so aggregate supply shifts right. decreases, so aggregate demand shifts left. decreases, so aggregate supply shifts left.

Answer 1

When taxes decrease, consumption A. increases, so aggregate demand shifts right.

What are the effects of taxes on consumption?

These are how decreased taxes impact the consumption of goods and services:

• Increases the purchasing power.
• Increases consumption.
• Increased consumption leads to increased effective demand.
• Increases production.

Thus, when taxes decrease, consumption A. increases, so aggregate demand shifts right.

Learn more about taxes and consumption at https://brainly.com/question/14786578

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