1.Explain the effect of an increase in income tax on the equilibrium output and inflation in the AD-AS model. Carefully distinguish between the short-run and the long-run equilibrium. Would this increase in income tax affect the potential output? Why/Why not? SRAS is horizontal, LRAS is vertical

3.An increase in population will lead to economic growth. Explain, in detail, whether you agree or disagree with this statement. (should address real GDP, real GDP per capita and average labour productivity)