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The economy is initially in its long-run equilibrium. Some people argues that a tax break to households would help to slow down the increase in

"The economy is initially in its long-run equilibrium. Some people argues that a tax break to households would help to slow down the increase in the CPI in the short run, which will help to tame inflation." Discuss the validity of this statement and support your answer with ONE DD-AA diagram.

Note: Compare your answer to initial equilibrium and only the first diagram will be graded. Also, the inflation rate is measured by the annualized percentage in the CPI and you should focus on what happens to the CPI.

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