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.
As a general rule, tax cuts increase aggregate demand, since less money paid to the tax authority means more money in the pockets of consumers.In more technical terms, tax cuts result in higher disposable income.ggregate demand is a function of how much money these players in the economy have to spend. This money is, in turn, a function of how much cash these entities and individuals take in, and to what extent they are willing and able to supplement this cash income by way of borrowing or reduce it by saving.