Starting from general equilibrium, what would be the long-run effects of a simultaneous reduction in government purchases (G↓) and increase in the money supply (M↑) designed to leave real GDP the same on each of the following economic variables? For each, you should write one of the following responses:  Up (U), Down (D), orSame (S)   The real interest rate (r) Investment (I) Consumption (C) The price level (P) Budget deficit (G – T)

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A: FEEL FREE TO ASK FOR CLARIFICATIONS

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A: *Answer:

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