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Refer to the Above Graph

Question 12

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Refer to the above graph. What combination would most likely cause a shift from AD<sub>1</sub> to AD<sub>3</sub>? A) An increase in taxes and an increase in government spending B) A decrease in taxes and an increase in government spending C) An increase in taxes and a decrease in government spending D) A decrease in taxes and a decrease in government spending Refer to the above graph. What combination would most likely cause a shift from AD1 to AD3?


A) An increase in taxes and an increase in government spending
B) A decrease in taxes and an increase in government spending
C) An increase in taxes and a decrease in government spending
D) A decrease in taxes and a decrease in government spending

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