Multiple Choice
Refer to the information provided in Figure 12.2 below to answer the questions that follow. Figure 12.2
-Refer to Figure 12.2. The tax multiplier is smallest (in absolute value) when the aggregate demand curve shifts from
A) AD1 to AD2.
B) AD3 to AD4.
C) AD5 to AD6.
D) The output multiplier is the same for all AD curve shifts shown in the figure.
Correct Answer:

Verified
Correct Answer:
Verified
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