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Question 31

Multiple Choice

-Refer to the above graph to answer this question.If autonomous taxes were to increase,what would be the result? A) The AE curve would shift up parallel and the equilibrium level of income would increase. B) The AE curve would shift up parallel and the equilibrium level of income would decrease. C) The AE curve would shift down parallel and the equilibrium level of income would increase. D) The AE curve would shift down parallel and the equilibrium level of income would decrease.
-Refer to the above graph to answer this question.If autonomous taxes were to increase,what would be the result?


A) The AE curve would shift up parallel and the equilibrium level of income would increase.
B) The AE curve would shift up parallel and the equilibrium level of income would decrease.
C) The AE curve would shift down parallel and the equilibrium level of income would increase.
D) The AE curve would shift down parallel and the equilibrium level of income would decrease.

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