Question

During recessions, state governments often will have to raise taxes and cut spending in order to keep their own budgets balanced. If a large number of states do this, what will happen to the aggregate demand curve at the national level

Answer 1

Answer:

Shift to the left since both of these actions are contradictory.

Explanation:

In the world of economics within the macro level, their are plenty of things that tend to create the demand curve move left; this may be seen when the overall quantity of products and services demanded at any given indicant falls. this will be thought of because the economy contracting. during a national level, masses which are the first consumers might spend less because the value of living is rising or because government taxes have increased. In in most cases arrange to spend less and save more if they expect prices to rise within the future.