For This Question,assume That the Economy Is Initially Operating at the Natural

question 33

Multiple Choice

For this question,assume that the economy is initially operating at the natural level of output.A reduction in taxes will cause

• A)an increase in the real wage in the medium run.
• B)a reduction in the real wage in the medium run.
• C)no change in the nominal wage in the medium run.
• D)ambiguous effects on the real wage in the medium run.
• E) none of the above

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