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Consider a hypothetical country in which, initially, real GDP equals potential GDP. Suppose that the gov- ernment decreases taxes. All else equal (with regard to

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Consider a hypothetical country in which, initially, real GDP equals potential GDP. Suppose that the gov- ernment decreases taxes. All else equal (with regard to the AD-IA model), relative to the short-run level, in the long run, the real interest rate is (A) higher. (B) lower. (C) the same

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