If oil prices rose at the same time that the federal government decreases taxes in the short run aggregate output and the price level aggregate output may either increase or decrease and the price level wil| rise aggregate output will increase, but the price level may either increase or decrease. aggregate output and the price level will both fall.

If oil prices rose at the same time that the federal government decreases taxes in the short run aggregate output and the price level aggregate output may either increase or decrease and the price level wil| rise aggregate output will increase, but the price level may either increase or decrease. aggregate output and the price level will both fall.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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