Refer to the Information Provided in Figure 27

question 92

Multiple Choice

Refer to the information provided in Figure 27.2 below to answer the question(s) that follow. Figure 27.2
-Refer to Figure 27.2. The tax multiplier is smallest (in absolute value) when the aggregate demand curve shifts from

• A) AD₁ to AD₂.
• B) AD₃ to AD₄.
• C) AD₅ to AD₆.
• D) The output multiplier is the same for all AD curve shifts shown in the figure.

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