Taxation
What Taxation means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Taxation
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Check what you remember
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Reference: Pearson Edexcel
Changes in corporation tax alter retained profits, whereas higher income tax reduces consumer spending.
A tool that affects aggregate demand indirectly through consumption and investment.
Topics that use Taxation
- Policy instruments (Pearson Edexcel A-Level)
- The wider economic environment (Pearson Edexcel A-Level)
Related terms
- Automatic stabiliser
- Exchange rates
- Fiscal policy
- Floating exchange rate
- Inflation
- Interest rates
- International trade
- Government spending
Using Taxation in the exam
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