Assume an economy is in short-run equilibrium with a real output (or real GDP) of Y 0

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Assume an economy is in short-run equilibrium with a real output (or real GDP) of Y₀ and a price level of PL₀. If the government increases income taxes on all income levels, what is the likely effect? (1 point)

	An indeterminate effect on real output and an increase in the price level
	An increase in real output and an increase in the price level
	A decrease in real output and a decrease in the price level
	An increase in real output and a decrease in the price level
	An increase in real output with an indeterminate effect on the price level

Posted Date: Jun 21, 2024 07:06 PM

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Assume an economy is in short-run equilibrium with a real output (or real GDP) of Y 0

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