An Increase in Personal Income Tax Rates Will Cause A(n)

question 232

Multiple Choice

An increase in personal income tax rates will cause a(n)

• A) decrease (or shift left) in aggregate demand.
• B) increase (or shift right) in aggregate demand.
• C) decrease in the quantity of real output demanded (or movement up along AD).
• D) increase in the quantity of real output demanded (or movement down along AD).

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Definitions:

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance composed of hydrogen and oxygen, essential for most forms of life on Earth.

Blood pH

A measure of the acidity or alkalinity of the blood, maintaining a tightly regulated level that is essential for normal bodily functions, usually around 7.35 to 7.45.