A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.
Correct Answer: A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes. ✔
Last Updated: June 18, 2019