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Refer to the Information Provided in Figure 27

question 151

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Refer to the information provided in Figure 27.3 below to answer the question(s) that follow. Refer to the information provided in Figure 27.3 below to answer the question(s)  that follow.   Figure 27.3 -Refer to Figure 27.3. Assume the economy is at Point A. Lower oil prices shift the aggregate supply curve to AS<sub>0</sub>. If the government decides to counter the effects of lower oil prices by decreasing net taxes, then the price level will be ________ than P<sub>0</sub> and output will be ________ than Y<sub>0</sub>. A)  greater; greater B)  greater; less C)  less; less D)  less; greater Figure 27.3
-Refer 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.


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