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Suppose the European countries are currently going through financial and economic difficulties. The US Congress passes a law to provide investment tax credit to businesses.

Suppose the European countries are currently going through financial and economic difficulties. The US Congress passes a law to provide investment tax credit to businesses. Simultaneously, there is a major technological breakthrough that is going to revolutionize the auto industry. What would be the combined impact of all these events on output and the price level in the US? a Both output and the price level increase b Output increases and the price level may increase, decrease, or remain the same c The effects on both output and the price level are ambiguous d Output may increase, decrease, or remain the same and the price level decreases

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