An increase in taxes will cause
A. AS to increase (move down and to the right).
B. AS to decrease (move up and to the left).
C. AD to increase (move to the right).
D. AD to decrease (move to the left).
Answer: D
You might also like to view...
A monopoly’s marginal revenue curve is always
a. is always above the demand curve. b. identical to that of a perfectly competitive firm. c. twice as steep as the demand curve. d. none of the above.
Use the following graph of the demand for coffee to answer the question below.
Refer to the three demand curves for coffee. Which of the following would shift the demand for coffee from D1 to D3?
A. a decrease in the price of coffee B. a decrease in the number of buyers of coffee C. an expected increase in the price of coffee in the future D. an increase in the number of buyers of coffee
Which of the following statements is most accurate about ownership of household goods, such as flush toilets, refrigerators, televisions, clothes dryers and automobiles?
a. In 2005, very few "officially poor" Americans owned these goods. b. The same proportion of Americans who were officially poor owned these goods in 2005 in comparison to 1950 . The proportion of officially poor Americans who owned these goods in 2005 was equal to the proportion of all households who owned these goods in 1950. c. A higher proportion of "poor" Americans owned these goods in 2005 compared to the proportion of all U.S. households who owned these goods in 1950. d. The proportion of Americans at the poverty level who owned these goods in 2005 was exactly double the proportion of all households who owned these goods in 1950.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C