When Taxes Increase,consumption

question 86

Multiple Choice

When taxes increase,consumption

• A)decreases as shown by a movement to the left along a given aggregate demand curve.
• B)decreases as shown by shifting aggregate demand to the left.
• C)increases as shown by shifting aggregate supply the left.
• D)None of the above is correct.

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Definitions:

Probability Of Occurrence

The likelihood of an event happening, measured on a scale from 0 (impossibility) to 1 (certainty).

Span Of Time

The duration or extent between two points in time.

Poisson Random Variable

A type of random variable that represents the number of events occurring in a fixed interval of time or space, under the condition that these events happen with a known constant mean rate and independently of the time since the last event.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.