Use the AD/AS model below to answer the following questions. In each case, assume the economy starts in long- and short-run eSuppose, instead, the government decides to take action to help the economy because they are worried about a high level of unemployment.
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multiple choice 4
raising taxes and/or raising spending.
cutting taxes and/or cutting spending.
raising taxes and/or cutting spending.
cutting taxes and/or raising spending.
doing nothing.
d. If the U.S. government makes the appropriate policy response, what happens to the price level and output in the long run.
In the long run, the price level
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and output
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.