Which of the following statements regarding taxes is correct ?

Question

Xaibi Aslam · Accepted Answer

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

Xaibi Aslam · Answer

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

Xaibi Aslam · Answer

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

Xaibi Aslam · Answer

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

Question #48140