Respuesta :
Other things the same, an increase in taxes shifts aggregate demand to the left. in the short run this makes output fall which makes the interest rate rise. The statement is false.
What Factors Cause Shifts in Aggregate Demand?
The entire amount of products and services that consumers are willing to buy in an economy over a certain period of time is known as aggregate demand (AD).
A shift in aggregate demand occurs when aggregate demand alters in respect to aggregate supply.
Consumer spending, investment expenditure, government spending, and the difference between exports and imports are all added together to form aggregate demand.
There is a shift in aggregate demand when any of these inputs to aggregate demand change.
Any broad-based economic phenomenon that alters the value of one or more of these factors will alter aggregate demand. A change in aggregate demand moves the AD curve to the left or to the right if aggregate supply is constant or is remained constant.
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