Exhibit 21-8 Aggregate demand and supply curves A graph depicting aggregate demand and supply model. Real G D P is on the horizontal axis and Price level is on the vertical axis. The aggregate demand curve, labeled A D, is concave up-shaped and curves down. The aggregate supply curves are also concave up-shaped and labeled A S_1 and A S_2. They are almost parallel and curve up. The A S_2 curve is a dashed curve and is to the right of the A S_1 curve, which is a bold curve. The aggregate demand curve intersects both curves, first the A S_1 curve and then the A S_2 curve. In Exhibit 21-8, supply-siders claimed that the shift from AS1 to AS2 would occur if the government: Group of answer choices increased tax rates and decreased the amount of government regulation. increased tax rates and increased the amount of government regulation. decreased tax rates and decreased the amount of government regulation. decreased tax rates and increased the amount of government regulation