For this question,assume that the economy is initially operating at the natural level of output.An increase in taxes will cause which of the following?
A) a reduction in output and no change in the aggregate price level in the short run
B) a reduction in employment and no change in the nominal wage in the short run
C) an increase in investment in the medium run
D) an increase in the aggregate price level,no change in output and no change in the interest rate in the medium run
Correct Answer:
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Q28: Assume the economy is initially operating at
Q28: For this question,assume that the economy is
Q31: A reduction in the aggregate price level
Q32: For this question,assume that the economy is
Q33: If Y < Yn,we know with certainty
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