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    Macroeconomics
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    Exam 22: Adding Government and Trade to the Simple Macro Model
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    In a Simple Macro Model with a Constant Price Level,a
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In a Simple Macro Model with a Constant Price Level,a

Question 9

Question 9

Multiple Choice

In a simple macro model with a constant price level,a decrease in the net tax rate causes the AE curve to


A) shift parallel downward.
B) shift parallel upward.
C) rotate downward.
D) rotate upward.
E) remain stationary.

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