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What does a deficit reduction imply for the medium run and the long run? If people have rational expectations, how does the equilibrium income change in the short-run?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section: Chapter Questions

Problem 6QP

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What does a deficit reduction imply for the medium run and the long run? If people have
rational expectations, how does the equilibrium income change in the short-run?

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