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Assume that the economy begins at full employment

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Use the IS-LM model to analyze the short-run and long-run effects of the following on real output, the unemployment rate, the interest rate, consumption, investment, and the price level. Assume that the economy begins at full employment.

(a) Increase in taxes
(b) Increase in government purchases
(c) Increase in the money supply
(d) Decrease in autonomous consumption

Reference no: EM131757406

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