Refer to the Information Provided in Figure 27

Multiple Choice

Refer to the information provided in Figure 27.2 below to answer the question(s) that follow. Figure 27.2
-Refer to Figure 27.2. Firms respond to a decrease in net taxes by mostly raising their prices when the aggregate demand curve shifts from

A) AD₁ to AD₂.
B) AD₃ to AD₄.
C) AD₅ to AD₆.
D) AD₆ to AD₁.