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(Figure: Determining SRAS Shifts) If the Government Raises Taxes

Question 69

Multiple Choice

(Figure: Determining SRAS Shifts) (Figure: Determining SRAS Shifts) If the government raises taxes or increases regulations,the short-run aggregate supply curve will shift from SRAS<sub>0</sub> to _____ and the price level will be at _____. A) SRAS<sub>1</sub>;P<sub>0</sub> B) SRAS<sub>1</sub>;P<sub>1</sub> C) SRAS<sub>2</sub>;P<sub>1</sub> D) SRAS<sub>2</sub>;P<sub>2</sub> If the government raises taxes or increases regulations,the short-run aggregate supply curve will shift from SRAS0 to _____ and the price level will be at _____.


A) SRAS1;P0
B) SRAS1;P1
C) SRAS2;P1
D) SRAS2;P2

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