Multiple Choice
Refer to the information provided in Figure 13.3 below to answer the questions that follow. 
Figure 13.3
-Refer to Figure 13.3.Assume the economy is at Point A.Higher oil prices shift the aggregate supply curve to AS2.If the government decides to counter the effects of higher oil prices by increasing net taxes,then the price level will be ________ than P2 and output will be ________ than Y2.
A) greater;greater
B) greater;less
C) less;less
D) less;greater
Correct Answer:
Verified
Correct Answer:
Verified
Q6: If firms increase their prices because of
Q15: Refer to the information provided in Figure
Q28: Since 1970, the United States experienced stagflation<br>A)
Q29: Fiscal policy affects the goods market through<br>A)
Q33: Refer to the information provided in Figure
Q44: Rising output coupled with falling prices is
Q95: The Fed will raise the interest rate
Q127: If a decrease in net taxes in
Q150: The Fed generally had high interest rates
Q157: A decrease in net taxes will result