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State and local governments had raised taxes

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Instead of cutting jobs from December 2009 to December 2010, suppose that the state and local governments had raised taxes. All other things being equal, higher taxes would (Decrease, Increase, or have no effect) the number of private-sector jobs in the short run.

Please choose one out of the three. I think in the short run it would have no effect but I just wanted to make sure with a tutor.

Reference no: EM131221281

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