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Economics
MEDIUM
ENGLISH
Economics
Which of the following statements regarding taxes is correct ?
A
Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
Option A
B
An increase in taxes shifts the aggregate demand curve to the right
Option B
C
A decrease in taxes shifts the aggregate supply curve to the left
Option C
A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.
Correct answer
Correct answer: D
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