When taxes go up, AD
A) moves to the left.
B) moves to the right.
C) achieves equilibrium.
D) none of the above.

Name: When taxes go up, AD A) moves to the left. B) moves to the right. C) achieves equilibrium. D) none of the above.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

When taxes increase, disposable income decreases, leading to a reduction in consumer spending. This decrease in spending causes the Aggregate Demand (AD) curve to shift to the left.

When Taxes Go Up, AD