The government decided to raise the taxes on people’s income in an economy of full employment.” Identify how the AGGREGATE DEMAND CURVE might be changed/shifted by the MONETARY or FISCAL POLICIES mentioned above. ILLUSTRATE(DRAW A GRAPH) and EXPLAIN the impact described above.

/in /by

The government decided to raise the taxes on people’s income in an
economy of full employment.”

Identify how the AGGREGATE DEMAND CURVE might be changed/shifted by
the MONETARY or FISCAL POLICIES mentioned above. ILLUSTRATE(DRAW A
GRAPH) and EXPLAIN the impact described above.

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