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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 Increase, Consumption
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When Taxes Increase, Consumption

Question 305

Question 305

Multiple Choice

When taxes increase, 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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