When Taxes Increase, Consumption

question 305

Multiple Choice

When taxes increase, consumption

• A) increases, so aggregate demand shifts right.
• B) increases, so aggregate supply shifts right.
• C) decreases, so aggregate demand shifts left.
• D) decreases, so aggregate supply shifts left.

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Definitions:

Four Inches Long

A measure of length equivalent to approximately 10.16 centimeters.

Weight Reaches

A term referring to the point at which an individual or object attains a particular weight.

Integumentary System

The largest organ system by surface area, comprising skin, hair, nails, and sweat glands and their products (sweat and mucus). It distinguishes, separates, and protects. The name derives from the Latin integumentum, which means “a covering.”

Vomiting

The forceful expulsion of the contents of one's stomach through the mouth, often a symptom of illness or distress.