Answer the questions below:
(A) Suppose real GDPis less than potental GDP. Use a diagram with inflation an the vertical axis and percentage deviation of real GDP fram potential GDP an the harizantal axis to show the short-rus and lang-run effects of a tax cut an the infletion rate and real GDP
(B) Exalan the tradeoff that has been made between unemplayment and inflation.
(C) Suppose that by the time the tax cut was in place, real GDP wras again equal to patential GDP. Trace the short-run and long-run results an the same diagram.

Question

Answer the questions below:
 (A) Suppose real GDPis less than potental GDP. Use a diagram with inflation an the vertical axis and percentage deviation of real GDP fram potential GDP an the harizantal axis to show the short-rus and lang-run effects of a tax cut an the infletion rate and real GDP
(B) Exalan the tradeoff that has been made between unemplayment and inflation.
(C) Suppose that by the time the tax cut was in place, real GDP wras again equal to patential GDP. Trace the short-run and long-run results an the same diagram.

Quizplus · Accepted Answer

The Answer of Answer the questions below:
 (A) Suppose real GDPis less than potental GDP. Use a diagram with inflation an the vertical axis and percentage deviation of real GDP fram potential GDP an the harizantal axis to show the short-rus and lang-run effects of a tax cut an the infletion rate and real GDP
(B) Exalan the tradeoff that has been made between unemplayment and inflation.
(C) Suppose that by the time the tax cut was in place, real GDP wras again equal to patential GDP. Trace the short-run and long-run results an the same diagram.

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