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A-LevelEconomicsThe macroeconomy9708/12 · Feb/Mar 2016 · Q191 Mark

A government decided to reduce income tax and increase sales tax. The initial equilibrium point is shown by X on the aggregate demand (AD) and aggregate supply (AS) diagram. What would be the equilibrium point after these tax changes?

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CC
DD

✓ Correct answer

C: C

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About this question

Topic
The macroeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Feb/Mar 2016 Paper 1 Variant 2, question 19.

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