  Suppose that consumer spending decreases. If output is at
potential output, would there be a change in taxes or government
spending?  AS/AD model  Report as  It is one thing to collect
taxes from employed resources, and another to collect taxes from
money spent in the economy. I believe there would be a change in
the taxes collected because some taxes like VAT depend on
consumer spending.  Helpful Fun Thanks for voting Comments (0)
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