Government Spending

Consumer Expectations

Degree of Excess Capacity

Personal Income Tax Rates

Productivity

National Income Abroad

Business Taxes

Domestic Resource Availability

Prices of Imported Products

Profit Expectations on Investments

Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply. A change in which factor is most likely to change both aggregate demand and aggregate supply?

Business Taxes.

Explanation:

A change in business taxes is most likely to change both aggregate demand and aggregate supply.

Aggregate demand can be defined as the total amount of goods and services by consumers at a specific period of time and price level in an economy.

Aggregate supply can be defined as the total amount of goods and services an organization is willing to sell or provide to it's consumers at a specific price level.

When business taxes are imposed on businesses, such as manufacturing companies, these in turn affect the demand and supply framework (final goods and services).

Basically, business taxes causes shifts in demand and supply, which in turn affect the price and quantity of goods and services in an economy.

Hence, companies would either be forced to cut-down on the amount of goods and services provided, result to borrowing or downsizing their manpower. As a result of this, they won't be able to meet the demands of their consumers.