Refer to the graph shown. During the Reagan Administration (1981 to 1989), tax rates were reduced significantly, while federal defense spending rose by 80 percent. The effect of these policies on the AD curve is best shown as a movement from:
A)A to B.
B)A to C.
C)A to D.
D)B to A.

Question

Refer to the graph shown. During the Reagan Administration (1981 to 1989), tax rates were reduced significantly, while federal defense spending rose by 80 percent. The effect of these policies on the AD curve is best shown as a movement from: 
A)A to B. 
B)A to C. 
C)A to D. 
D)B to A.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. During the Reagan Administration (1981 to 1989), tax rates were reduced significantly, while federal defense spending rose by 80 percent. The effect of these policies on the AD curve is best shown as a movement from: 
A)A to B. 
B)A to C. 
C)A to D. 
D)B to A.

Refer to the Graph Shown