What combination would most likely cause a shift from AD1 to AD2?   Multiple Choice   An increase in taxes and an increase in government purchases   An increase in taxes and no change in government purchases   A decrease in taxes and an increase in government purchases   A decrease in taxes and a decrease in government purchases

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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What combination would most likely cause a shift from AD1 to AD2?

 

Multiple Choice
  •  
    An increase in taxes and an increase in government purchases
  •  
    An increase in taxes and no change in government purchases
  •  
    A decrease in taxes and an increase in government purchases
  •  
    A decrease in taxes and a decrease in government purchases
AD2
AD1
AD3
Real Domestic Output, GDP
Price Level
Transcribed Image Text:AD2 AD1 AD3 Real Domestic Output, GDP Price Level
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