dancer1636 dancer1636
  • 08-08-2017
  • Business
contestada

When the government lowers income taxes, consumption is ______________, causing a __________ the ad curve?

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andriansp andriansp
  • 16-08-2017
When the government lowers income taxes, consumption is Stimulated, causing a rightward shift of the AD curve.
By lowering income taxes, the government will ensure an increase in average disposable income (part of the income that could be used to buy things). This will stimulate consumption and rightward movement in the Curve.
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