Refer to Exhibit above. A movement from point A to point B on AD1 would have been the result of a. a decrease in the price level. b. an increase in the price level. c. an increase in income taxes. d. a decrease in income taxes

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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8. Refer to Exhibit above. A movement from point A to point B on AD1 would have been the result of a. a decrease in the price level. b. an increase in the price level. c. an increase in income taxes. d. a decrease in income taxes
Price Level (P)
P₁
1
P₂
2
A
Q₁
1
C
B
Q₂
$2
AD
D
AD₂
2
Q₂ Real GDP (Q)
3
Transcribed Image Text:Price Level (P) P₁ 1 P₂ 2 A Q₁ 1 C B Q₂ $2 AD D AD₂ 2 Q₂ Real GDP (Q) 3
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