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Starting with AD₁ and AS1 in the Graph Below, If

Question 11

Multiple Choice

Starting with AD₁ and AS1 in the graph below, if taxes increase, then in the short run:
Graph 14-1 Starting with AD₁ and AS<sub>1</sub> in the graph below, if taxes increase, then in the short run: Graph 14-1 A) output stays the same and prices fall B) output increases and prices rise C) output increases and prices fall D) output decreases and prices rise E) output decreases and prices fall


A) output stays the same and prices fall
B) output increases and prices rise
C) output increases and prices fall
D) output decreases and prices rise
E) output decreases and prices fall

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