Multiple Choice
Starting from long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, a temporary five-period tax increase causes output to _____ returning to the natural level in the long run.
A) remain continuously above the natural level of output until
B) move above and then below the natural level of output until
C) remain continuously below the natural level of output until
D) move below and then above the natural level of output before
Correct Answer:

Verified
Correct Answer:
Verified
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