When All Else Is Equal, If an Increase in Federal

Multiple Choice

When all else is equal, if an increase in federal income tax leads to a decrease in equilibrium output and no change in the equilibrium price, then we can conclude that the economy must be operating on the:

A) classical range of the short-run aggregate supply curve.
B) Keynesian range of the short-run aggregate supply curve.
C) upward-sloping range of the short-run aggregate supply curve.
D) long-run aggregate supply curve.