Question: What would Keynesians and new classical macroeconomists predict to be the impacts of each of the following on the course of prices, output, and employment?

What would Keynesians and new classical macroeconomists predict to be the impacts of each of the following on the course of prices, output, and employment?

In each case, hold tax rates and interest rates constant unless specifically mentioned:

a. A large tax cut

b. A large cut in interest rates

c. A wave of innovations that increases potential output by 10 percent

d. A burst of exports

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