Figure 35-2 Use the Pair of Diagrams Below to Answer the Following

question 22

Multiple Choice

Figure 35-2
Use the pair of diagrams below to answer the following questions.
-Refer to Figure 35-2.If the economy starts at C and 1,then in the short run,an increase in taxes moves the economy to

• A)B and 2.
• B)D and 3.
• C)E and 2.
• D)None of the above is correct.

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Definitions:

Interest Allowances

The amount of interest income received or credited to an account, sometimes used in calculating adjusted income or benefits.