Refer to the Information Provided in Figure 13

question 86

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

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Definitions:

Sophomore Surge

The phenomenon where political candidates see a significant increase in votes or support in their second campaign or term.

Gerrymandering

The practice of manipulating the boundaries of electoral constituencies to favor one party or class.

House of Representatives

One of the two chambers of the United States Congress, responsible for making and passing federal laws, consisting of members elected from each state, with the number of representatives based on the state's population.

Fixed

Set or decided upon definitively and with authority, often referring to predetermined policies or positions.