12.3 Shocks to the System

question 166

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. Lower oil prices shift the aggregate supply curve to AS₀. If the government decides to counter the effects of lower oil prices by decreasing government spending, then the price level will be ________ than P₀ and output will be ________ than Y₀.

• A) greater; greater
• B) greater; less
• C) less; less
• D) less; greater

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Definitions:

Future Time Perspective

The degree to which individuals think about the future, make future-oriented plans, and take action to achieve future goals.

Logical Order

The sequential arrangement of ideas, facts, or events based on their logical relationships to one another, enhancing comprehension and coherence in written or spoken discourse.

Apocrine Sweat Glands

A type of sweat gland mainly found in underarm and genital areas, responsible for secreting a thicker sweat that, when broken down by bacteria, produces body odor.

Sebaceous Glands

Small oil-producing glands located in the skin of mammals that secrete sebum into hair follicles to lubricate the skin and hair.