Multiple Choice
Figure 34-8
-Refer to Figure 34-8.An increase in taxes will
A) shift aggregate demand from AD1 to AD2.
B) shift aggregate demand from AD1 to AD3.
C) cause movement from point A to point B along AD1.
D) have no effect on aggregate demand.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q109: An aide to a U.S.Congressman computes the
Q110: If the multiplier is 6 and if
Q111: If the multiplier is 5.25,then the MPC
Q112: A tax increase has<br>A)a multiplier effect but
Q113: As real GDP falls,<br>A)money demand rises,so the
Q115: Figure 34-6.On the left-hand graph,MS represents the
Q116: Which of the following events shifts aggregate
Q117: Suppose there are both multiplier and crowding
Q118: If the MPC = 0.75,then the government
Q119: Which of the following tends to make