Suppose the government decides to decrease the income tax. What is the primary effect of this decision?
A) It decreases unemployment in the long-run.
B) It increases output in the long-run.
C) It decreases the price level in the short-run.
D) It increases inflation in the short-run.
Correct Answer:
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Q21: Figure 17-1 Q22: Figure 17-1 
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