12.3 Shocks to the System

question 20

Multiple Choice

12.3 Shocks to the System
Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3
-Refer to Figure 12.3. 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:

Social Relationships

Connections between individuals that can provide support, friendship, love, and social networking, impacting well-being and social identity.

Personal Rewards

Benefits or satisfactions that individuals personally gain from their actions or efforts.

Mutual Perspective Taking

Adolescents’ understanding that they take other people’s point of view at the same time as others attempt to take their own point of view.

Social Hierarchy

A system of organizing individuals within a society based on status, rank, or authority.