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    Principles of Macroeconomics Study Set 8
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    Exam 21: The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand
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    Figure 34-8 -Refer to Figure 34-8.An Increase in Taxes Will
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Figure 34-8 -Refer to Figure 34-8.An Increase in Taxes Will

Question 114

Question 114

Multiple Choice

Figure 34-8 Figure 34-8   -Refer to Figure 34-8.An increase in taxes will A) shift aggregate demand from AD<sub>1</sub> to AD<sub>2</sub>. B) shift aggregate demand from AD<sub>1</sub> to AD<sub>3</sub>. C) cause movement from point A to point B along AD<sub>1</sub>. D) have no effect on aggregate demand.
-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.

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