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(Last Word) According to the Research of Christina Romer and David

Question 7

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(Last Word) According to the research of Christina Romer and David Romer, tax increases implemented to reduce an inherited budget deficit


A) reduce real output by the same amount as any other tax increase.
B) reduce real output by more than other tax increases.
C) reduce real output by less than other tax increases.
D) increase real output, contrary to what occurs with other tax increases.

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