Pontotoc, Mississippi. Pontotoc is a city in, and the county seat of, Pontotoc County, Mississippi, located to the west of the much larger city of Tupelo. The population was 5,625 at the 2010 census.[1]
Changes in Taxes. The two instruments of fiscal policy are government spending and taxation. A tax increase depresses consumer spending and shifts the aggregate demand curve to the left. A tax cut shifts the aggregate demand curve to the right.The size of these shifts are affected by the multiplier and crowding out effects too, but there is another factor which is important. If households perceive that the tax cut is temporary, it will have a very small impact on aggregate demand.hanges in Taxes. The two instruments of fiscal policy are government spending and taxation. A tax increase depresses consumer spending and shifts the aggregate demand curve to the left. A tax cut shifts the aggregate demand curve to the right.
When government spending decreases, regardless of tax policy, aggregate demand decrease, thus shifting to the left. The fourth term that will lead to a shift in the aggregate demand curve is NX(e). This term means that net exports, defined as exports less imports, is a function of the real exchange rate.As the real exchange rate rises, the dollar becomes stronger, causing imports to rise and exports to fall.gain, an exogenous decrease in the demand for exported goods or an exogenous increase in the demand for imported goods will also cause the aggregate demand curve to shift left as net exports fall. An example of this type of exogenous shift would be a change in tastes or preferences. 1  1.