In a simple macro model with a constant price level, a decrease in the net tax rate causes the AE curve to
A)shift parallel upward.
B)shift parallel downward.
C)remain stationary.
D)rotate downward.
E)rotate upward.

Question

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The Answer of In a simple macro model with a constant price level, a decrease in the net tax rate causes the AE curve to
A)shift parallel upward.
B)shift parallel downward.
C)remain stationary.
D)rotate downward.
E)rotate upward.

In a Simple Macro Model with a Constant Price Level