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    Principles of Economics Study Set 8
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    Exam 35: The Short-Run Tradeoff Between Inflation and Unemployment
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    If Taxes Rise, Then Aggregate Demand Shifts
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If Taxes Rise, Then Aggregate Demand Shifts

Question 87

Question 87

Multiple Choice

If taxes rise, then aggregate demand shifts


A) right, making unemployment higher than otherwise.
B) right, making unemployment lower than otherwise.
C) left, making unemployment higher than otherwise.
D) left, making unemployment lower than otherwise.

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