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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