Refer to the information provided in Figure 27.3 below to answer the question(s) that follow.
Figure 27.3Refer 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 net taxes, then the price level will be ________ than P0 and output will be ________ than Y0.
A. greater; greater
B. less; less
C. less; greater
D. greater; less
Answer: A
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Which of the following is excludable but not rivalrous in consumption?
a. Cable television b. Non congested toll roads c. Near empty gold courses. d. All of the above.
An individual having an unusually good year will be on his short-run consumption function at a point ________ his long-run consumption function, with an unusually ________ saving ratio
A) above, high B) above, low C) below, high D) below, low
Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings. One reason for this is to:
A. restrict the supply of construction workers. B. increase the elasticity of demand for construction workers. C. increase the demand for construction workers. D. increase the price of substitute inputs.
The real rate of interest is
A. negative if the anticipated rate of inflation is zero. B. the market rate of interest expressed in today's dollars. C. the nominal rate of interest minus the anticipated rate of inflation. D. the nominal rate of interest divided by the anticipated rate of inflation.