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Fiscal policy consists of the executive branch's decisions to tax and spend.If the economy is in an expansionary mode just coming out of a recession,
Fiscal policy consists of the executive branch's decisions to tax and spend.If the economy is in an expansionary mode just coming out of a recession, in regards to aggregate demand and aggregate supply, we can assume that a tax hike will lead to
a.aggregate supply to shift inward.
b.aggregate demand to shift inward.
c.no changes will occur.
d.aggregate demand and supply to shift inward.
e.the economy expanding even more as a result.
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