A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2017 · Q281 Mark
The government of a country plans to raise income tax rates. The initial equilibrium for the country is represented by point X on the diagram. [Figure 28.1] Which new equilibrium point would an economist predict as the result?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
A[Diagram option A]
B[Diagram option B]
C[Diagram option C]
D[Diagram option D]
✓ Correct answer
D: [Diagram option D]
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