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Use the AS/AD model to explain the maxim in politics that if you are going to increase taxes, the time to do it is right after your election, when reelection is far off. A. Increasing taxes shifts the aggregate demand curve in to the right, decreasing income, increasing unemployment, and making people more likely to vote for those in office. The maxim holds because people tend to have short memories. B. Increasing taxes shifts the aggregate demand curve in to the left, decreasing income, increasing unemployment, and making people less likely to vote for those in office. The maxim holds because people tend to have short memories. C. Increasing taxes shifts the aggregate demand curve in to the right, increasing income, decreasing unemployment, and making people more likely to vote for those in office. The maxim holds because people tend to have short memories D. Increasing taxes shifts the aggregate demand curve in to the left, increasing income, decreasing unemployment, and making people less likely to vote for those in office. The maxim holds because people tend to have short memories.

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Answer: Option B: Increasing taxes shifts the aggregate demand curve in to the left,decreasing income, increasing unemployment and making people less likely to vote for those in office.The maxim holds because people tend to have short memories.

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