Multiple Choice
When taxes increase,consumption
A) decreases as shown by a movement to the left along a given aggregate demand curve.
B) decreases as shown by shifting aggregate demand to the left.
C) increases as shown by shifting aggregate supply the left.
D) None of the above is correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Assuming that a is positive,theories of short-run
Q18: The long-run aggregate supply curve shifts right
Q28: Other things the same, as the price
Q32: Other things the same,when the government spends
Q55: The classical dichotomy refers to the separation
Q82: If speculators gained greater confidence so that
Q84: The slope of the U.S.aggregate demand curve
Q91: Suppose the economy is in long-run equilibrium.In
Q145: Make a list of things that would
Q209: According to the sticky-wage theory of the