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. Everything else the same, if taxes riseaggregate demand shifts out to the right.aggregate demand shifts out to the right.aggregate supply shifts in to the left.aggregate demand shifts in to the left.


. Everything else the same, if taxes rise
aggregate demand shifts out to the right.
aggregate demand shifts out to the right.
aggregate supply shifts in to the left.
aggregate demand shifts in to the left.

Step 1

When there is an imposition of taxes, there is a reduction in consumer spending. Therefore, when there are taxes imposed, which is a factor other than price, there is a shift in the aggregate demand curve.

Step 2

Aggregate demand curve shows an inverse relationship...

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