If taxes are increased, the AD curve Select one: a. shifts rightward and aggregate demand decreases. b. shifts leftward and aggregate demand decreases. c. does not shift but there is a movement down along the curve. d. is not affected because a change in taxes is a nominal change not real change.
If taxes are increased, the AD curve Select one: a. shifts rightward and aggregate demand decreases. b. shifts leftward and aggregate demand decreases. c. does not shift but there is a movement down along the curve. d. is not affected because a change in taxes is a nominal change not real change.
Chapter22: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 1P
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Question
If taxes are increased, the AD curve
Select one:
a. shifts rightward and aggregate demand decreases.
b. shifts leftward and aggregate demand decreases.
c. does not shift but there is a movement down along the curve.
d. is not affected because a change in taxes is a nominal change not real change.
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