Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 28
9708Fiscal policy
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. Which new equilibrium point would an economist predict as the result?
- AA
- BB
- CC
- DD
As printed in the paper
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Correct answer: D. D
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