Refer to the Information Provided in Figure 27

Multiple Choice

Refer to the information provided in Figure 27.3 below to answer the question(s) that follow. Figure 27.3
-Refer to Figure 27.3. Assume the economy is at Point A. Lower oil prices shift the aggregate supply curve to AS₀. If the government decides to counter the effects of lower oil prices by decreasing government spending, then the price level will be ________ than P₀ and output will be ________ than Y₀.

A) greater; greater
B) greater; less
C) less; less
D) less; greater