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Question 10 If the time path of government purchases does not change and the government cuts the current labour income tax rate, then: A)[ ]
Question 10 If the time path of government purchases does not change and the government cuts the current labour income tax rate, then: A)[ ] labour supply is shifted to the future. B)[ ] labour supply is shifted to the present. C)[ ] present GDP is reduced. D)[ ] future GDP is increased. B)[ ] A and D. F)[ ] there is no change in GDP because of Ricardian equivalence. G)[ ] None of the above
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