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Which of the Following Policies Shifts the AD Curve the Farthest

Question 173

Multiple Choice

Which of the following policies shifts the AD curve the farthest leftward?


A) a rise in taxes of $10 billion
B) a cut in taxes of $10 billion
C) a decrease in government expenditure of $10 billion
D) a decrease in both government expenditure and taxes of $10 billion

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