Question:

Does Marginal Propensity To Consume ,along with wealth, taxes and creadit , shift Aggregate demand curve?

by Guest33656  |  earlier

0 LIKES UnLike

Or only creates it?

 Tags:

   Report

1 ANSWERS


  1. If you mean taxes in the form of fiscal policy then yes, the aggregate demand curve shifts. Taxes can affect the slopeof the MPC curve. A shift in the MPC however will shift the demand curve if there is an increase in autonomous consumption. Wealth will shift the curve.

    Remember what isn't on the axis will shift the curve unless it affects the variables on the x and Y.

Question Stats

Latest activity: earlier.
This question has 1 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions