Exhibit 11-8 Aggregate Demand and Supply Curves

Multiple Choice

Exhibit 11-8 Aggregate demand and supply curves

In Exhibit 11-8, supply-siders claimed that the shift from AS₁ to AS₂ would occur if the government:

A) increased tax rates and increased the amount of government regulation.
B) increased tax rates and decreased the amount of government regulation.
C) decreased tax rates and increased the amount of government regulation.
D) decreased tax rates and decreased the amount of government regulation.