Figure 17-2 Use the Pair of Diagrams Below to Answer the Following

Multiple Choice

Figure 17-2
Use the pair of diagrams below to answer the following questions.

-Refer to Figure 17-2. If the economy starts at C and 1, then in the short run, an increase in taxes moves the economy to

A) B and 2.
B) D and 3.
C) E and 2.
D) None of the above is correct.