If the government were to increase income taxes, we would predict:

A. a shift in aggregate demand to the right.
B. a downward movement along the aggregate demand curve.
C. a shift in aggregate demand to the left.
D. an upward movement along the aggregate demand.

Answer: C

Economics

You might also like to view...

The unemployment resulting from wage rigidity and job rationing is called:

A. the natural rate of unemployment. B. the discouraged-worker effect. C. structural unemployment. D. insiders versus outsiders.

Economics

One advantage of emissions permits is that they allow the government to choose the level of pollution reduction

a. True b. False Indicate whether the statement is true or false

Economics