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.
A cut in taxes would mean that people effectively have more income, therefore more i â¦ ncome can be spent on goods and services. This ability for consumers to spend more means that they will demand more, shifting the aggregate demand curve to the right.  It is the same in a business sense.If there was to be tax cuts for businesses, businesses have the ability to spend more in turn increasing aggregate demand. ~MB.ecause a tax increase will cause consumption to decrease, an aggregate demand has a greater effect.