Suppose that in May 2026 the government successfully carries out the type of policy necessary to restore the natural level of output described in the previous question. In November 2026, consumer confidence decreases, leading to a decrease in consumer spending. Due to the sales tax _____ associated with implementing monetary and fiscal policy, the impact of the government's new policy will likely leave the economy above the natural level of output once the effects of the policy are fully realized.

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26-06-2024
Business

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Suppose that in May 2026 the government successfully carries out the type of policy necessary to restore the natural level of output described in the previous question. In November 2026, consumer confidence decreases, leading to a decrease in consumer spending. Due to the sales tax _____ associated with implementing monetary and fiscal policy, the impact of the government's new policy will likely leave the economy above the natural level of output once the effects of the policy are fully realized.

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