Exhibit 11-6 Aggregate demand and supply model 
In Exhibit 11-6, if the aggregate demand curve is at AD3, the government should:
A) raise taxes to move to AD1.
B) cut taxes to move to AD2.
C) cut taxes to move to AD1.
D) cut spending to move to AD2.
E) not change its behavior.
Correct Answer:
Verified
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