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Consider the Keynesian model with a flexible price level and flexible money wage. Using the IS-LM and AD-AS diagram, explain the effects on output, price,

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Consider the Keynesian model with a flexible price level and flexible money wage. Using the IS-LM and AD-AS diagram, explain the effects on output, price, interest rate, real wages, and employment, given a decrease in government spending. (10 markah/marks)

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