Business, 14.07.2019 00:00, alexandergonzalez38

Suppose the economy is initially in long-run equilibrium. the government enacts a policy to decrease taxes. in the short-run, this expansionary fiscal policy will cause: a. a shift from ad 2 to ad 1 and a movement to point c, with a lower price level and the same output. b. a shift from sras 2 to sras 1 and a movement to point d, with a higher price level and lower output. c. a shift from sras 1 to sras 2 and a movement to point b, with a lower price level and higher output. d. a shift from ad 1 to ad 2 and a movement to point b, with a higher price level and higher output.

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Suppose the economy is initially in long-run equilibrium. the government enacts a policy to decrease...