![-On the graph above,suppose the economy is at point 1.Which sequence of points best illustrates the short-run and then long-run impacts of a permanent tax reduction? [Assume that potential output remains constant at .] A) 2,4,1 B) 7,2,5 C) 2,7,6 D) 7,8,1](https://d2lvgg3v3hfg70.cloudfront.net/TB5035/11eab396_7975_7afb_be6e_fb83ee8c15c8_TB5035_00_TB5035_00_TB5035_00_TB5035_00_TB5035_00.jpg)
-On the graph above,suppose the economy is at point 1.Which sequence of points best illustrates the short-run and then long-run impacts of a permanent tax reduction? [Assume that potential output remains constant at ![-On the graph above,suppose the economy is at point 1.Which sequence of points best illustrates the short-run and then long-run impacts of a permanent tax reduction? [Assume that potential output remains constant at .] A) 2,4,1 B) 7,2,5 C) 2,7,6 D) 7,8,1](https://d2lvgg3v3hfg70.cloudfront.net/TB5035/11eab396_7975_f02d_be6e_47cef4560080_TB5035_11.jpg)
.]
A) 2,4,1
B) 7,2,5
C) 2,7,6
D) 7,8,1
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