Which of the following statements regarding taxes is correct ?

A. A decrease in taxes shifts the aggregate supply curve to the left

B. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.

C. An increase in taxes shifts the aggregate demand curve to the right

D. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand

Be the first to comment if anything wrong with this mcq
Your comment successfully submitted!
It will automatically posted after review and approval by our staff member.