A Tax Increase

question 141

Multiple Choice

A tax increase

• A)increases the quantity of real GDP demanded and there is a movement down along the AD curve.
• B)does not shift or lead to a movement along the aggregate demand curve.
• C)decreases aggregate demand and the AD curve shifts leftward.
• D)increases aggregate demand and the AD curve shifts rightward.
• E)decreases the quantity of real GDP demanded and there is a movement up along the AD curve.

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Definitions:

Pricing

The process of determining the monetary value at which goods and services will be sold.

Psychographic Measures

Tools or methods used to assess and analyze the psychological attributes of individuals, such as interests, values, and lifestyles.

Demographic Data

Information related to the characteristics of a population, such as age, gender, income, and education, used for statistical analysis.

Lifestyles

The collective habits, attitudes, tastes, moral standards, economic level, and social relations that characterize an individual or community.