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From an Initial Long-Run Macroeconomic Equilibrium, If the Reserve Bank

Question 53

Multiple Choice

From an initial long-run macroeconomic equilibrium, if the Reserve Bank of Australia anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the RBA would most likely:


A) increase income tax rates.
B) decrease income tax rates.
C) increase interest rates.
D) decrease interest rates.

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