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(1) [15 points] Even if all individual prices change frequently, but not necessarily at the same time, the overall price level could adjust gradually.(2) [15

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(1) [15 points] Even if all individual prices change frequently, but not necessarily at the same time, the overall price level could adjust gradually.(2) [15 points] A permanent tax cut in the Permanent Income Hypothesis (PIH) has the similar effect on current aggregate consumption as in the Keynesian consumption function

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