Question: Explain clearly Identify each statement below as TRUE or FALSE. Explain your answer to get marks. 1. Everything else held constant, suppose the economy is

Explain clearly

Identify each statement below as TRUE or FALSE. Explain your answer to get marks. 1. Everything else held constant, suppose the economy is currently producing at the natural rate of output, increase in income taxes, in the long-run, decreases inflation rate and increases unemployment rate. 2. A sudden decrease in people's expectations of future stock prices and an increase in budget deficit decreases interest rates

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