Question: f there is a tax cut at the same time that major new sources of oil are discovered in the country, what would we expect
f there is a tax cut at the same time that major new sources of oil are discovered in the country, what would we expect to happen in the short run? If the economy was at the full employment level before these changes, what kind of gap the economy will get after these changes? Explain the natural adjustment process for closing this gap. Show your answer graphically.
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