Suppose there is an increase in taxes. What is the short-run effect on output, inflation, and the

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Suppose there is an increase in taxes. What is the short-run effect on output, inflation, and the real interest rate, assuming any supply-side effects are minimal? What will be the effect in the long run if the Fed chooses to adjust its target real interest rate to the new long-run real interest rate at which saving equals investment? (LO1)

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Principles Of Macroeconomics

ISBN: 9781259414367

6th Edition

Authors: Robert Frank, Ben Bernanke, Kate Antonovics

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