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18 November, 06:31

When the excess capacity of business expands unintentionally, aggregate: demand will increase supply will decrease?

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  1. 18 November, 06:59
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    Fall in business taxes shifts supply curve to the right since business supply move with less taxes. Also Fall in business taxes increases after tax profit on investment. So aggregate demand shifts right. Hence, it increases aggregate demand and increases aggregate supply also.
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