Suppose the U.S. Congress is forced to increase taxes to pay for the cost of health care
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Suppose the U.S. Congress is forced to increase taxes to pay for the cost of health care reform in the United States. Describe the effects of such a policy, according to the three business cycle models, if this increase in taxes is fully anticipated by economic agents.
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Three prominent business cycle theoriesthe classical Keynesian and real business cycle RBC modelsfeature distinct predictions regarding the consequenc...View the full answer
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