Question : Decrease in ____________, will increase the aggregate demand in the economy.
Option 1: Taxation
Option 2: Government spending
Option 3: Both A and B
Option 4: Neither A nor B
Answer (1)
21st Jan, 2024
Correct Answer:
Taxation
Solution :
Decrease in taxation will increase the aggregate demand in the economy. This will increase the disposable income of the consumer.
Hence, Option A is correct.
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