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{"ops":[{"insert":"Starting from general equilibrium, what would be the\u00a0"},{"attributes":{"bold":true},"insert":"long-run"},{"insert":"\u00a0effects of\u00a0"},{"attributes":{"bold":true},"insert":"a simultaneous reduction in personal taxes (T\u2193), increased government purchases (G\u2191), and revenue-neutral reduction in the capital tax rate (\u03c4\u2193)"},{"insert":"\u00a0on \nReal GDP (Y)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"The real interest rate (r)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"Investment (I)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"Consumption (C) (recall, the effect of disposable income exceeds the small effect of the interest rate)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"The price level (P)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"Budget deficit (G \u2013 T)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"The nominal exchange rate (e"},{"attributes":{"script":"sub"},"insert":"nom"},{"insert":")"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"Exports (EX)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"Imports (IM)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"Net exports (NX)"},{"attributes":{"list":"ordered"},"insert":"\n"},{"insert":"\n"}]}

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