A broad based increase in taxes will lead to A an increase in households' disposable income and will shift the aggregate demand curve to the left. B a decrease in households' disposable income and will shift the aggregate demand curve to the right. a decrease in households' disposable income and will shift the aggregate demand curve to the left. an increase in households' disposable income and will shift the aggregate demand curve to the right. E an increase in households' disposable income but will not shift the aggregate demand curve to the left or right.

A broad based increase in taxes will lead to A an increase in households' disposable income and will shift the aggregate demand curve to the left. B a decrease in households' disposable income and will shift the aggregate demand curve to the right. a decrease in households' disposable income and will shift the aggregate demand curve to the left. an increase in households' disposable income and will shift the aggregate demand curve to the right. E an increase in households' disposable income but will not shift the aggregate demand curve to the left or right.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 33RQ: How is recession illustrated in an AD/AS model?

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