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28-12-2022
Social Studies

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What effect does the elimination of sales tax by state governments have on the short-run economy?

A)

Investment will decrease and AS will shift left in the short-run.

B)

Consumption will decrease and AD will shift left in the short-run.

09

Consumption will increase and AD will shift right in the short-run.

D)

Government spending will decrease and AD will shift left in the short-run.
.

Fundamental Economic Concepts

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