question archive Suppose an economy is initially in a long-run equilibrium, but all signs indicate a boom period is looming
Suppose an economy is initially in a long-run equilibrium, but all signs indicate a boom period is looming
Subject:EconomicsPrice: Bought3
Suppose an economy is initially in a long-run equilibrium, but all signs indicate a boom period is looming. Suppose the fiscal policymakers decide to make 25% tax cuts. Using the AD/AS model, describe the effect this policy will have on inflation and real GDP in the short run and the long run in the U.S.
