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changes in taxes shift the aggregate demand curve equal-sized changes in government purchases. by more than by exactly as much as by less than in inverse proportion to

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The overall demand for final products and services in an economy at a certain time is known in macroeconomics as aggregate demand, sometimes known as a domestic final demand.

Effective demand is a common name for it, however other times this term is used to make a distinction. This is a country's demand for its gross domestic output. The total of consumption, investment, government purchases, and net exports at each price level in every period is represented by the aggregate demand curve. Due to the wealth effect on consumption, the interest rate effect on investment, and the impact of global commerce on net exports, it slopes downward.

As the components of aggregate demand—consumption spending, investment expenditure, government spending, and spending on exports minus imports—increase, the aggregate demand curve, or AD curve, moves to the right.

Learn more about aggregate demand here: https://brainly.com/question/1490249

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