If Taxes Are Increased, the AD Curve

question 125

Multiple Choice

If taxes are increased, the AD curve

• A) is not affected because a change in taxes is a nominal change not real change.
• B) shifts rightward and aggregate demand decreases.
• C) shifts leftward and aggregate demand decreases.
• D) does not shift but there is a movement down along the curve.

---

Definitions:

Junior High School

An educational institution for children who are in the grades between elementary school and high school, often encompassing grades 7-9.

Gay and Lesbian Parents

Same-sex couples who are raising children together, whether through birth, adoption, or as step-parents.

Mainstream Family Style

Describes prevalent or widely accepted family dynamics, values, and practices within a given society.

Urie Bronfenbrenner

An influential developmental psychologist who developed the Ecological Systems Theory to explain how the inherent qualities of a child and the environment interact to influence how the child grows and develops.