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Assuming an Upward-Sloping Short-Run Aggregate Supply Curve, a Decrease in Taxes

Question 118

Multiple Choice

Assuming an upward-sloping short-run aggregate supply curve, a decrease in taxes results in ________ in output and ________ in prices in the short run.


A) an increase; an increase
B) a decrease; an increase
C) a decrease; no change
D) no change; a decrease

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