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For this question, assume that the economy is initiallyoperating at the natural level of output. A reduction in taxes willcause: A) an increase in the

For this question, assume that the economy is initiallyoperating at the natural level of output. A reduction in taxes willcause:

A) an increase in the real wage in the medium run.

B) a reduction in the real wage in the medium run.

C) no change in the nominal wage in the medium run.

D) ambiguous effects on the real wage in the medium run.

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