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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
  5. Question
    If the Government Increases Taxes, the
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If the Government Increases Taxes, the

Question 154

Question 154

Multiple Choice

If the government increases taxes, the


A) aggregate demand increases.
B) aggregate demand decreases.
C) aggregate supply increases.
D) aggregate supply decreases.

Correct Answer:

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