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If the Federal Government increases taxes: What will be the final effect on AEand GDP? AE increases and GDP increases AE increases and GDP decreases

If the Federal Government increases taxes: What will be the final effect on AEand GDP?

AE increases and GDP increases

AE increases and GDP decreases

AE decreases and GDP increases

AE decreases and GDP decreases

AE remains unchangedand GDP decreases

AE decreases and GDP remains unchanged

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