Figure 16-1
-Refer to Figure 16-1.An increase in taxes would be depicted as a movement from ________,using the static AD-AS model in the figure above.

Name: Figure 16-1 -Refer to Figure 16-1.An increase in taxes would be depicted as a movement from ________,using the static AD-AS model in the figure above.
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Question

Figure 16-1 
-Refer to Figure 16-1.An increase in taxes would be depicted as a movement from ________,using the static AD-AS model in the figure above.

Quizplus · Accepted Answer

An increase in taxes would decrease consumption and investment, shifting the AD curve to the left. Therefore, the movement would be from B to A.

Figure 16-1 -Refer to Figure 16-1.An Increase in Taxes Would Be Depicted