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5. Explain whether each of the following results in a change in the cyclical deficit, or a change in the natural employment deficit, or both.
5. Explain whether each of the following results in a change in the cyclical deficit, or a change in the natural employment deficit, or both.
(a) A cut in the tax rate aimed at reducing unemployment.
(b) The rise in taxes that occurs during an expansion.
(c) The higher defense spending associated with the Afghanistan war.
(d) The increase in unemployment compensation due to a rise in the unemployment rate.
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