Consider two policies—a tax cut that lasts for only one year and a tax cut that is expected to be…

Consider two policies—a tax cut that lasts for only one year and a tax cut that is expected to be…
 Consider two policies—a tax cut that lasts for only one year and a tax cut that is expected to be permanent Option. Which policy will stimulate greater spending by consumers? Solve Which policy will have the greater impact on aggregate demand? Solve Explain Option. The economy is in a recession with high unemployment and low output Option. a Option. Draw a graph of aggregate demand and aggregate supply to illustrate the current situation Option. Be sure to include the aggregate-demand curve, the shortrun aggregate-supply curve, and the long-run aggregate-supply curve Option. b Option. Identify an open-market operation that would restore the economy to its natural rate Option. c Option. Draw a graph of the money market to illustrate the effect of this open-market operation Option. Show the resulting change in the interest rate Option. d Option. Draw a graph similar to the one in part a to show the effect of the open-market operation on output and the price level Option. Explain in words why the policy has the effect that you have shown in the graph. May 17 2022 08:02 PM

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