What Is the Impact on the equilibrium level of price and aggregate output in the short run. When the economy is producing on the nearly flat portion of the AS curve if the government decreases net tax. Select one: a. decreasing prices much more than they decrease output Ob. none of the options Oc. Increasing output much more than they increase prices Od. Increasing prices much more than they increase output cost-push is Select one: a. Simultaneous increase in unemployment and inflation b. Inflation caused by an increase in costs. Oc. None of the options d. Stagflation