President Bush lowered income taxes for individuals in 2001. Explain how lower income taxes affect the aggregate demand curve
What will be an ideal response?
Lowering the income tax increases the amount of disposable income available to households. Higher disposable income increases consumption at every price level. The result is a shift in the aggregate demand curve to the right.
Economics
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Policy coordination is difficult because each country
A) prefers to be the one to increase demand. B) prefers to be the one to appreciate its currency. C) prefers that other countries increase their demand. D) prefers to be the one to increase taxes. E) prefers that other countries increase taxes.
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Identify some of the basic assumptions of monopoly
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