Use the Following to Answer Questions

question 90

Multiple Choice

Use the following to answer questions:
Figure: Shifts in Demand and Supply IV
-(Figure: Shifts in Demand and Supply IV) Use Figure: Shifts in Demand and Supply IV.The figure shows how supply and demand might shift in response to specific events.Suppose oil becomes more expensive.Which panel BEST describes how this will affect the market for gasoline,which is made from oil?

• A) Panel (a)
• B) Panel (b)
• C) Panel (c)
• D) Panel (d)

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Definitions:

Discretionary Fiscal Policy

Government policy actions, like changing tax rates and spending levels, aimed at influencing economic activity based on current conditions.

Legislative Decision-Making

The process by which elected representatives create, modify, or repeal laws within a governmental legislative body.

Drawn Out

Prolonged over time or made to last longer than necessary, often referring to events or processes.

Consumption Decisions

Choices made by individuals or households on purchasing goods and services with their available income.