Figure 34-8 P AD, Refer to Figure 34-8. An increase in taxes will AD, shift aggregate demand from AD, to AD3. cause movement from point A to point B along AD₁. have no effect on aggregate demand. shift aggregate demand from AD, to AD₂. AD₂

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Chapter1: Making Economics Decisions
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Figure 34-8
P
AD₂
Refer to Figure 34-8. An increase in taxes will
AD₁
shift aggregate demand from AD, to AD3.
cause movement from point A to point B along AD₁.
O have no effect on aggregate demand.
shift aggregate demand from AD, to AD₂.
AD₂
Transcribed Image Text:Figure 34-8 P AD₂ Refer to Figure 34-8. An increase in taxes will AD₁ shift aggregate demand from AD, to AD3. cause movement from point A to point B along AD₁. O have no effect on aggregate demand. shift aggregate demand from AD, to AD₂. AD₂
Which of the following tends to make the size of a shift in aggregate demand resulting from an increase
in government purchases smaller than it otherwise would be?
the multiplier effect
the accelerator effect
the imposter effect
O the crowding-out effect.
Transcribed Image Text:Which of the following tends to make the size of a shift in aggregate demand resulting from an increase in government purchases smaller than it otherwise would be? the multiplier effect the accelerator effect the imposter effect O the crowding-out effect.
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