Figure 34-8
-Refer to Figure 34-8. An increase in taxes will
A) shift aggregate demand from AD1 to AD2.
B) shift aggregate demand from AD1 to AD3.
C) cause movement from point A to point B along AD1.
D) have no effect on aggregate demand.

Question

Figure 34-8 
-Refer to Figure 34-8. An increase in taxes will
A) shift aggregate demand from AD1 to AD2. 
B) shift aggregate demand from AD1 to AD3. 
C) cause movement from point A to point B along AD1. 
D) have no effect on aggregate demand.

Quizplus · Accepted Answer

The Answer of Figure 34-8 
-Refer to Figure 34-8. An increase in taxes will
A) shift aggregate demand from AD1 to AD2. 
B) shift aggregate demand from AD1 to AD3. 
C) cause movement from point A to point B along AD1. 
D) have no effect on aggregate demand.

Figure 34-8 -Refer to Figure 34-8. an Increase in Taxes Will