Refer to the information provided in Figure 12.1 below to answer the questions that follow. Figure 12.1 -Refer to Figure 12.1. An aggregate demand shift from AD² to AD⁰ can be caused by A) a decrease in the price level. B) an increase in the price level. C) a decrease in taxes. D) a decrease in money supply.

Question

Quizplus · Accepted Answer

A decrease in taxes increases consumers' disposable income, leading to an increase in consumer spending, which shifts the aggregate demand curve to the right.

Refer to the Information Provided in Figure 12