a. Use the IS/LM - AD/AS models to find the short-run and long-run effects of a fall in lump-sum taxes, ??. Discuss your results.

Must Compare Keynesian to Classical ideas: Including Short-run IS-LM and long run IS-LM to short run AS/AD and long run AS/AD for both classical and Keynesian

Consider an economy that is described by the following equations: ca = C + Cy ( Y - T) - Cyr T = T+ty Id = [ - Yrr + YyY G = G Ma DEL= L+lyY- by(r+ me ) MS = M Y: Full-employment level of output Where C, Cr, T, I, Yr, VY, L, ly and ly are positive numbers, 0