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:

Enrichment

An approach whereby gifted students are kept at grade level but are enrolled in special programs and given individual activities to allow greater depth of study.

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Refers to individuals, typically children or adolescents, who demonstrate outstanding abilities or potential in one or more domains.

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A disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, originating before the age of 18.

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