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2. Suppose the central bank has the two policy objectives of full employment and price stability. Use the ISLM model to analyze how the central
2. Suppose the central bank has the two policy objectives of full employment and price stability. Use the ISLM model to analyze how the central bank should adjust the money supply in response to an increase in taxes. Assume the economy begins at full employment. Please include a well-annotated graphical analysis. (5 points)
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