Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

8. if taxes are increased, the ad curve O shifts rightward and aggregate demand decreases O shifts leftward and aggregate demand decreases O does

8. if taxes are increased, the ad curve O shifts rightward and aggregate demand decreases O shifts leftward and aggregate demand decreases O does not shift but there is a movement down along the curve O is not affected because a change in taxes is a nominal change not real change.

Step by Step Solution

3.49 Rating (152 Votes )

There are 3 Steps involved in it

Step: 1

Ans shifts leftward and aggerate demand decreases ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics Principles And Policy

Authors: William J. Baumol, Alan S. Blinder

11th Edition

0324586213, 978-0324586213

More Books

Students also viewed these Economics questions

Question

investigate the identity work model

Answered: 1 week ago

Question

How does monetarism differ from the quantity theory of money?

Answered: 1 week ago