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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
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    An Increase in Net Taxes at a Given Price Level
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An Increase in Net Taxes at a Given Price Level

Question 197

Question 197

Multiple Choice

An increase in net taxes at a given price level leads to


A) no change in aggregate demand.
B) an increase in aggregate demand.
C) a decrease in aggregate demand.
D) an increase in aggregate supply.

Correct Answer:

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