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Moderate

Business Taxes and AD

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Suppose the government decided to fill a budget shortfall with a new business tax.

How would that impact Aggregate Demand?

A

Aggregate Demand would not be affected.

B

The slope of the Aggregate Demand curve would increase.

C

The slope of the Aggregate Demand curve would decrease.

D

Aggregate Demand would shift right.

E

Aggregate Demand would shift left.