If the Short-Run Macroeconomic Equilibrium Occurs in the Keynesian Range

Multiple Choice

If the short-run macroeconomic equilibrium occurs in the Keynesian range of the short-run aggregate supply curve, then an increase in the federal income tax will lead to:

A) an increase in the equilibrium price.
B) a decrease in the equilibrium price.
C) an increase in the equilibrium output.
D) a decrease in equilibrium output.