Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve.
-Refer to the information above.If the overall tax rate increases with no change in the price level,the resulting IS-LM equilibrium corresponds to a point in the AD diagram
A) which has moved upward along the same AD curve.
B) straight above A on a new AD curve.
C) straight below A on a new AD curve.
D) directly to the right of A on a new AD curve.
E) directly to the left of A on a new AD curve.
Correct Answer:
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