Question
Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy to move from the new short-run equilibrium eventually
Suppose the economy is in long-run equilibrium and the government decreases taxes. What causes the economy to move from the new short-run equilibrium eventually to a long-run equilibrium? A. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the left B. LRAS will shift to the left C. Nominal wages, prices, and perceptions adjust upward, shifting SRAS to the right D. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the left E. Nominal wages, prices, and perceptions adjust downward, shifting SRAS to the right
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Macroeconomics
Authors: Robert J Gordon
12th edition
138014914, 978-0138014919
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