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By using AD-AS Curve Phillips Curve analysis, explain what happens to output and price level as well as unemployment and inflation rates for each of
By using
- AD-AS Curve
- Phillips Curve analysis,
explain what happens to output and price level as well as unemployment and inflation rates for each of the situations listed below:
a) The government reduces the tax rate for individual income in order to encourage households' spending.
b) Central Bank increases the required reserve ratio.
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