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6) In order to address its Federal Budget Deficit, the Greek Government increased the tax rate by 7% for the top 50th percentile of household
6) In order to address its Federal Budget Deficit, the Greek Government increased the tax rate by 7% for the top 50th percentile of household incomes. Included in this law, the government loosened capital requirements for banks lending to start-up businesses in its newly emerging biochemical sector. If all else remains equal, using the concept of Aggregate Demand and Aggregate Supply, what will happen to Greece's GDP and Price Level?
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