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    Principles of Macroeconomics Study Set 1
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    Exam 15: Aggregate Demand and Aggregate Supply
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    When Taxes Decrease, Consumption
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When Taxes Decrease, Consumption

Question 555

Question 555

Multiple Choice

When taxes decrease, consumption


A) increases, so aggregate demand shifts right.
B) increases, so aggregate supply shifts right.
C) decreases, so aggregate demand shifts left.
D) decreases, so aggregate supply shifts left.

Correct Answer:

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