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fReconsider the original scenario, where the government cuts taxes while at full employment, and suppose that the Federal Reserve responds appropriately with open market operations
\fReconsider the original scenario, where the government cuts taxes while at full employment, and suppose that the Federal Reserve responds appropriately with open market operations to return to full employment. Put the following steps in the process in the correct order. Drag and drop options into correct order and submit. For keyboard navigation.. SHOW MORE w E The price level falls and real GDP falls to the full employment level. Aggregate demand increases following the tax cut. E The money supply falls and interest rates rise. Investment spending decreases, which decreases aggregate demand. The price level increases and real GDP increases beyond the full employment level. The Federal Reserve sells U.5. Treasury bonds
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