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  3. Study Set
    Principles of Macroeconomics
  4. Exam
    Exam 17: The Short-Run Trade-Off Between Inflation and Unemployment
  5. Question
    Figure 17-2 Use the Pair of Diagrams Below to Answer the Following
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Figure 17-2 Use the Pair of Diagrams Below to Answer the Following

Question 192

Question 192

Multiple Choice

Figure 17-2
Use the pair of diagrams below to answer the following questions.
Figure 17-2 Use the pair of diagrams below to answer the following questions.    -Refer to Figure 17-2. If the economy starts at C and 1, then in the short run, a decrease in taxes moves the economy to A)  D and 2. B)  D and 3. C)  back to C and 1. D)  None of the above is correct.
-Refer to Figure 17-2. If the economy starts at C and 1, then in the short run, a decrease in taxes moves the economy to


A) D and 2.
B) D and 3.
C) back to C and 1.
D) None of the above is correct.

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