Figure 2. PRICE LEVEL 70 к AD₂ QUANTITY OF OUTPUT 9 AD, AD₂ Refer to Figure 2. An increase in taxes will a. shift aggregate demand from AD₁ to AD3. b. shift aggregate demand from AD to AD2. C. cause movement from point C to point D along AD₁. d. have no effect on aggregate demand.

Figure 2. PRICE LEVEL 70 к AD₂ QUANTITY OF OUTPUT 9 AD, AD₂ Refer to Figure 2. An increase in taxes will a. shift aggregate demand from AD₁ to AD3. b. shift aggregate demand from AD to AD2. C. cause movement from point C to point D along AD₁. d. have no effect on aggregate demand.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 5CQQ

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Question

Figure 2.
PRICE LEVEL
7°
к
AD₂
QUANTITY OF OUTPUT
6
AD,
AD₂
Refer to Figure 2. An increase in taxes will
a. shift aggregate demand from AD₁ to AD3.
b. shift aggregate demand from AD to AD2.
C. cause movement from point C to point D along AD₁.
d. have no effect on aggregate demand.

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