An Increase in the Price Level Will

question 45

Multiple Choice

An increase in the price level will

• A)increase the real money supply and shift the aggregate demand curve.
• B)decrease the real money supply and shift the aggregate demand curve.
• C)change the slope of the aggregate demand curve at each income level.
• D)None of the above is correct.

Understand the principles of tax progressivity, regressivity, and proportionality.

Understand the various sources of government revenue.

Analyze the impact of elasticities on tax efficiency and tax burden distribution.

Interpret economic models, including supply and demand curves, to determine the effects of taxes and government policies.