Answer to Question #330245 in Macroeconomics for A.vee

Question #330245

Does temporal relief on fuel tax suggested by the Finance Minister have a positive


impact on the economic growth

1
Expert's answer
2022-04-19T09:59:16-0400

Lowering taxes raises disposable income, allowing the consumer to spend additional sums, thereby increasing GNP. Reducing taxes thus pushes out the aggregate demand curve as consumers demand more goods and services with their higher disposable incomes.


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