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Yes I agree.

When profits tax are imposed, firms will have a lower incentive to invest, leading to the decrease in gross investment expenditure. And hence, the decrease in aggregate demand.

However, for the imposition of salaries tax increases the cost of goods and services, leading to a decrease in disposable income and the decrease in private consumption expenditure. Therefore, the aggregate demand for goods and services will decrease. And hence, the price level and the aggregate output decreases, the short run aggregate supply decreases.

# data[].attributes.body
Yes i agree.

As the product tax on business affects investment expenditure and the aggregate demand while the sale tax affect the short-term aggregate supply. profit tax will reduce the firm’s after tax profits which directly impacting the investment expenditure. While sales tax increased the production cost for businesses as they must pay more tax per unit sold which lead to a leftward shift in the short-run aggregate supply curve as firms are less willing to supply at each price level. So sales tax also reduces consumers’ real purchasing power due a higher prices which decreases consumption and aggregate demand. Although profit tax has a primary impact on investment and aggregate demand and also sales-tax on short-run aggregate supply curve, both taxes have broader effect on the economy.

# data[].attributes.body
Yes I agree?

Profits tax is a kind of direct tax on producers(companies), producers can’t shift the tax burden to customers so market price for goods will remain unchanged. (But producers’ marginal cost increases, would they produce less, Qs decrease, supply decrease?)

Sales tax is a kind of indirect business tax, producers can shift the tax burden by raising market price of the old which the sales tax imposed on. Therefore supply for the goods will decrease while supply for other goods increases since these good are in competitive supply. Short run aggregate supply, as long as the sales tax isn’t imposed on all goods, will therefore decrease, due to the deadweight loss caused by the sales tax (marginal benefit is higher than marginal cost), producers have less wealth to produce more.

# data[].attributes.body
I agree with the statement.

Firstly, the profit businessmen received decreased due to the imposed profits tax, they will have less incentive to invest, investment expenditure decreases. As investment expenditure is a non-price determinant of aggregate demand, hence aggregate demand  decreases and AD curve will shift to the left.

Secondly, sales tax will increase the cost of production for firms no matter they need to pay the tax directly or pass it on to customers through higher prices. In the short run, when production costs increased, production becomes less profitable and firms will produce less. Hence SRAS decreases and the SRAS curve will shift to the left.

# data[].attributes.body
Yes, I agree. Profits tax reduces after-tax income. Less money is available for reinvestment and hence it will lower investment expenditure and cause a decrease in aggregate demand.

Sales tax increases the cost of goods, leading to an increase in cost of production. This will cause a decrease in short-run aggregate supply.

# data[].attributes.body
Yes, I agree.

Profits tax reduces businesses’ revenue, which decreases investment expenditure as businesses have fewer resources to reinvest in growth and innovation. Since investment is a key component of aggregate demand, tax causes a decrease in the demand in the economy.

Sales tax increases the price of goods and services, which cause a decrease in consumption by reducing consumers’ purchasing power. This influences aggregate demand rather than supply. While sales taxes can marginally affect short-run aggregate supply by increasing production costs for businesses, the primary effect is on demand.

Therefore, while profits tax affects investment and aggregate demand, the idea that sales tax impacts short-run aggregate supply is less accurate.

# data[].attributes.body
Yes I agree.

The profits tax on businesses directly impacts their net income, leading to reduced investment expenditure and a subsequent decline in aggregate demand. Companies have less capital available for growth initiatives, which can hinder economic expansion. Conversely, a sales tax increases the cost of goods sold, prompting businesses to raise prices. This can shift the short-run aggregate supply to the left, resulting in higher prices and lower output. Thus, each tax affects different aspects of economic activity.

# data[].attributes.body
Yes, I agree with that statement.

When profit tax is imposed or increased, the total profit they receive decreases. Therefore, firms have less resources and capital to invest in more production and the firm. Thus, investment expenditure and aggregate demand decreases.

When sales tax is imposed or increased, the cost of production per unit increases. This causes the firm to produce less, as it is now more expensive to produce the same amount than as before. Therefore, short-run aggregate supply decreases.

# data[].attributes.body
Yes I agree.

Under a profits tax/imcrease in profits tax, the revenue for firms after tax decreases. As firms earn less, they have fewer resources and are less likely to engage in investments, causing a decrease in investment expenditure and thus the aggregate demand.

Under a sales tax/increase in sales tax, the cost of production for firms increase. As the cost of producing each unit at every level increases, firms are more likely to reduce their amount supplied at every amount. Hence the short run aggregate supply would decrease, causing a leftward shift in the curve.

# data[].attributes.body
Yes, I agree.

As the profit tax reduces the net income, there are fewer resourses available for reinvestment annd this can decrease the investment expenditure. Thus, aggregate demand decreases.

Since the sales tax increases the cost of goods and services, the intencive for firm to produce at every price level decreases in short run. Therefore, short run aggregate supply decreases.

# data[].attributes.body
Yes I agree. When there is a change in profit taxes, firms after tax profits increase or decrease. This determines the firms willingness and ability to invest, hence, the gross investment expenditure is influenced and aggregate demand increased or decreases depending on the change in profit taxes. For sales tax, when there is a change in sales tax, production costs are affected, firms will reduce or increase their output depending on the change in production costs, hence, the short run aggregate supply is affected and will increase or decrease.

# data[].attributes.body
Yes, I agree that profits tax affects investment expenditure and aggregate demand, while sales tax affects aggregate supply in the short run. When profits tax is imposed, the investment expenditure decreases. This leads to a decrease in people’s investment incentive, in which consumers tend to consume less goods. As a result, aggregate demand decreases.

On the other hand, when sales tax is imposed, the tax will be imposed on the goods and service provided. This results in an increase in the cost of production. Hence, suppliers tend to produce less goods and the short-run aggregate supply decreases.

# data[].attributes.body
I agree. As profits tax on business will reduce the after-tax profits they have which will lead to a decrease in the investment expenditure. And because of the decreased investment expenditure, this will lead to a decrease in the aggregate demand. For sales tax, this is a tax that producers burden consumers with, meaning the prices of goods and services will increase. This may lead to a loss in their total revenue due to the decrease in overall consumption from increased prices, their quantity demanded as well as a decrease in short run aggregate supply. (5C15)

# data[].attributes.body
Yes, I agree with the statement that a profits tax on businesses affects investment expenditure and aggregate demand, while a sales tax affects short-run aggregate supply. A profits tax reduces the amount of money businesses have left after paying taxes, which means they have less to spend on investments like new equipment or expanding their operations. This reduction in investment lowers aggregate demand because investment is a key part of the total spending in the economy. On the other hand, a sales tax increases the cost of goods and services for consumers, which can lead to lower sales for businesses. In the short run, this makes it more expensive or less profitable for businesses to produce goods and services, reducing the short-run aggregate supply. Therefore, the two taxes have different effects on the economy: profits taxes impact demand, while sales taxes impact supply.

(5C11)

# data[].attributes.body
Yes, I agree. Profits tax reduce income for businesses, and the production cost increase. Investment expenditure will decrease, leading to aggregate demand decrease.

Sales tax is levied on the final sales of goods and services. This means the production cost will increase. If businesses pass the sales tax to customers by increasing the price, the customer's cost to buy goods and services decrease. Quantity demanded will decrease, leading to reduced output level. As cost to produce increase, there'll be a leftward shift of the short run aggregate supply.