Question

Suppose the government raises income taxes, so consumers have less take-home pay. this policy action will cause a(n)

Answer 1

Hey darwintoribio6449, thanks for submitting your question!

The answer to your question is aggregate demand.

Aggregate demand is the total demand for final goods and services in an economy at a given time. It specifies the amounts of goods and services that will be purchased at all possible price levels.

This is the demand for the gross domestic product of a country.

Please let me know if you need any help with anything else, have a good one!