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.
DEFINITION of 'Aggregate Demand'. The total amount of goods and services demanded in the economy at a given overall price level and in a given time period. It is represented by the aggregate-demand curve, which describes the relationship between price levels and the quantity of output that firms are willing to provide. Normally there is a negative relationship between aggregate demand and the price level. Also known as total spending.