Refer to the information provided in Figure 27.1 below to answer the question(s) that follow. Figure 27.1 -Refer to Figure 27.1. An aggregate demand shift from AD² to AD¹ can be caused by A) a decrease in the price level. B) an increase in the price level. C) a decrease in taxes. D) a decrease in money supply.

Question

Quizplus · Accepted Answer

A decrease in taxes increases disposable income, which leads to an increase in aggregate demand.

Refer to the Information Provided in Figure 27