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3. For each of the following, (i) Identity whether it is an expansionary fiscal policy, a contractionary fiscal policy, or not a fiscal policy; (ii)

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3. For each of the following, (i) Identity whether it is an expansionary fiscal policy, a contractionary fiscal policy, or not a fiscal policy; (ii) Explain how would it affect output and interest rate on a graph of IS-LM model. (a) The income tax rate is increased. (b) The Central Bank lowers the target level of the relevant interest rate. (c) The level of government spending is increased. (d) A particular city in the country builds a new underground train system in an attempt to expand employment in the city

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