When taxes decrease,consumption
A)decreases as shown by a movement to the left along a given aggregate-demand curve.
B)decreases as shown by a shift of the aggregate demand curve to the left.
C)increases as shown by a movement to the right along a given aggregate-demand curve.
D)increases as shown by a shift of the aggregate demand curve to the right.

Question

Quizplus · Accepted Answer

When taxes decrease, consumers have more disposable income, leading to an increase in consumption. This increase in consumption shifts the aggregate demand curve to the right.

When Taxes Decrease,consumption