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Suppose a country is in the midst of an economic boom and is running large budget surpluses. The president suggests that due to the good economic conditions, the time is ripe for a large tax cut. In this case, a tax cut will: Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. push AD to the right and increase output. unanswered increase the price level and costs. unanswered eventually cause a leftward shift of SRAS. unanswered push AD to the left and decrease output. unanswered decrease the price level and costs. unanswered eventually cause a rightward shift of SRAS. unanswered eventually cause a rightward shift of LRAS.
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Suppose a country is in the midst of an economic boom and is running large budget surpluses. The pre...
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