2 1.Which factors can shift AD curve? Illustrate your answer with a graph. 2. What tax system do you know? Describe them. 3. What is simple government multiplier in Keynesian analyses? 4. Determine equilibrium price level Natural output is 8,000 units AD curve is described by the equation Y = 8200 2P. 5. For the data below derive the IS equation and plot it on the graph. Illustrate the effect of increased government spending. Economy of country is described by the following equations: C = 260 + 0.7 *(Y-T) I = 200 1000 i (M/P)S = 2500 (M/P)'fl = 2Y 6000 i T = 300 G = 300