It is argued that a policy of tax reduction will result in: OA. A shift from...

      

   

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It is argued that a policy of tax reduction will result in: OA. A shift from LRAS2 to LRAS, with a higher price level and lower output. OB. A shift from LRAS, to LRAS with higher output at a lower price level. OC. A shift from LRAS, to LRAS2 with lower output at a lower price level. O D. A shift from LRAS2 to LRAS, with a lower price level and higher output. Price Level 118 114- 110- 106- 102- 98- 94- 90 -O Z2 LRAS₁ A 16 LRAS₂ B 8 Real GDP 10 12 14 AD₁ 16 It is argued that a policy of tax reduction will result in: OA. A shift from LRAS2 to LRAS, with a higher price level and lower output. OB. A shift from LRAS, to LRAS with higher output at a lower price level. OC. A shift from LRAS, to LRAS2 with lower output at a lower price level. O D. A shift from LRAS2 to LRAS, with a lower price level and higher output. Price Level 118 114- 110- 106- 102- 98- 94- 90 -O Z2 LRAS₁ A 16 LRAS₂ B 8 Real GDP 10 12 14 AD₁ 16