A Tax Increase

question 300

Multiple Choice

A tax increase

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

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Definitions:

Partnership Act

Legislation that sets out the rights and obligations of partners in a partnership business structure.

Rights

Entitlements or permissions, either legal, social, or moral, that individuals have in a society.

Obligations

Duties or commitments that an individual or entity is legally or morally bound to perform.

Unanimously Vote

When all members of a decision-making body agree and vote in the same way on a particular issue.