As income taxes rise,disposable income __________,causing __________ the AD curve.
A) increases; movement down along
B) increases; a rightward shift of
C) decreases; movement up along
D) decreases; a leftward shift of

Question

Quizplus · Accepted Answer

As income taxes rise, disposable income decreases, which leads to a decrease in consumption spending. This ultimately causes a leftward shift of the aggregate demand (AD) curve.

As Income Taxes Rise,disposable Income __________,Causing __________ the AD Curve

As Income Taxes Rise,disposable Income ,Causing the AD Curve