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Exhibit 15-6 Aggregate Demand and Supply Model

Question 112

Multiple Choice

Exhibit 15-6 Aggregate demand and supply model
Exhibit 15-6 Aggregate demand and supply model    -In Exhibit 15-6,if the aggregate demand curve is at AD₂ ,the government should: A)  raise taxes to move to AD₁. B)  cut taxes to move to AD₃ C)  cut taxes to move to AD₃. D)  cut spending to move to AD₃.. E)  not change its policy.
-In Exhibit 15-6,if the aggregate demand curve is at AD₂ ,the government should:


A) raise taxes to move to AD₁.
B) cut taxes to move to AD₃
C) cut taxes to move to AD₃.
D) cut spending to move to AD₃..
E) not change its policy.

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