If Taxes Are Increased, the AD Curve

question 163

Multiple Choice

If taxes are increased, the AD curve

• A) is not affected because a change in taxes is a nominal change not real change.
• B) does not shift but there is a movement down along the curve.
• C) shifts rightward and aggregate demand decreases.
• D) shifts leftward and aggregate demand decreases.

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Definitions:

Self-Report Questionnaires

A research or assessment tool in which individuals provide information about themselves, typically regarding attitudes, behaviors, or personality.

Counterproductive Work Behavior

Behavior that violates organizational norms and causes harm to the organization and/or employees.

Power Distance

A societal characteristic that indicates the degree to which individuals with less authority within organizations or communities accept and anticipate an unequal distribution of power.

Positive Attitudes

A mental outlook that typically sees the good in situations, anticipates positive outcomes, and is generally optimistic.