If taxes are increased, the AD curve A) is not affected ...

[nmorano1]

If taxes are increased, the AD curve
 
  A) is not affected because a change in taxes is a nominal change not real change.
  B) shifts rightward and aggregate demand decreases.
  C) shifts leftward and aggregate demand decreases.
  D) does not shift but there is a movement down along the curve.

Question 2

The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?
 
  A) from point a to point e
  B) from point a to point b
  C) from point a to point c
  D) from point a to point d

[voltaire123]

Answer to Question 1

C

Answer to Question 2

C

[nmorano1]

YES! Correct, THANKS for helping me on my review

[recede]

Gracias!