Demonstrate the short-run effect of this tax cut

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Reference no: EM1344351

Q. Which of the subsequent is the best example of land?
The ethanol refined from corn
A factory which produces new goods also services
The river water utilized to float a riverboat casino
A barber's chair

Q. Assume which the economy is at full employment. The government decides to cut taxes to give the economy an extra boost.
a) Demonstrate the short-run effect of this tax cut using the IS-LM model also the AD-SRAS-LRAS model. Illustrate what will take place to o/p also the interest rate?

Reference no: EM1344351

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