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Refer to the Graph Shown

Question 98

Multiple Choice

Refer to the graph shown. During the Reagan Administration (1981 to 1989) , tax rates were reduced significantly, while federal defense spending rose by 80 percent. The effect of these policies on the AD curve is best shown as a movement from: Refer to the graph shown. During the Reagan Administration (1981 to 1989) , tax rates were reduced significantly, while federal defense spending rose by 80 percent. The effect of these policies on the AD curve is best shown as a movement from: A) A to B. B) A to C. C) A to D. D) B to A.


A) A to B.
B) A to C.
C) A to D.
D) B to A.

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