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a. a short-run equilibrium but not a long-run equilibrium. b. a short-run equilibrium and long-run equilibrium. c. a long-run equilibrium but not a short-run equilibrium. d. neither a short-run equilibrium nor a
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Solved] Suppose the government imposes an excise tax on the production of a... | Course Hero
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SOLVED: . Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts 50 billion to the left. The government wants to change its spending to offset this decrease in
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Show the short-run impact of a $2 per unit excise tax imposed on firms in a competitive industry. (Assume the industry is in equilibrium before the tax was imposed.) How would the