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In the DSGE framework, prospects for a fiscal cliff in the fall of 2012 increases ________ about the future leading firms to ________, which would

In the DSGE framework, prospects for a "fiscal cliff" in the fall of 2012 increases ________ about the future leading firms to ________, which would ________.

a.state spending; reduce pensions; reduce the labor supplyb.tax rates; increase investment; improve TFPc.uncertainty; delay investment; slow economic activityd.federal surpluses; hire more workers; decrease unemploymente.interest rates; reduce investment; lead to better long-term growth

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