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In which of the following situations would you expect the short-term response of output to a tax cut to be larger? a) When many productive

In which of the following situations would you expect the short-term response of output to a tax cut to be larger?

a) When many productive resources are idle

b) When the government promises to plug the deficit in the future through spending cuts

c) When the economy is closed, in the sense that there is no borrowing from abroad

d) When the beneficiaries of the tax cut are low-income households

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