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.

---

Definitions:

Transfer

The act of moving assets, liabilities, or ownership rights from one entity or account to another.

Share Capital

The funds that a company raises through the issuance of shares to investors, representing ownership in the company.