When Taxes Increase,consumption

question 91

Multiple Choice

When taxes increase,consumption

• A)decreases as shown by a movement to the left along a given aggregate-demand curve.
• B)decreases as shown by a shift of the aggregate demand curve to the left.
• C)increases as shown by a movement to the right along a given aggregate-demand curve.
• D)increases as shown by a shift of the aggregate demand curve to the right.

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Definitions:

Cash Received

The amount of money taken in by a business during a particular period, including transactions in cash and equivalents.

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for most general and financial purposes.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.