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Suppose an economy is initially in a long-run equilibrium, but all signs indicate a boom period is looming. Suppose the fiscal policymakers decide to make

Suppose an economy is initially in a long-run equilibrium, but all signs indicate a boom period is looming. Suppose the fiscal policymakers decide to make 25% tax cuts. Using the AD/AS model, describe the effect this policy will have on inflation and real GDP in the short run and the long run in the U.S.

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