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MMLU-Pro / 7640 / Suppose taxes are cut in an economy that is in equilibrium at full employment.…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Suppose taxes are cut in an economy that is in equilibrium at full employment. In the long run the tax cut will

category

economics

options

  1. have no effect on the price level but raise real output.
  2. lower real output without affecting the price level.
  3. lower the price level.
  4. have no effect on real output or the price level.
  5. raise real output and lower the price level.
  6. lower real output and lower the price level.
  7. raise the price level.
  8. raise real output without affecting the price level.
  9. raise real output and raise the price level.
  10. lower real output and raise the price level.

src

ori_mmlu-high_school_macroeconomics

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