Dynamic Model of Aggregate Demand and Aggregate Supply 5. Suppose that policy makers decide to temporarily raise taxes. Graphically illustrate the impact of the increase in taxes using the model of dynamic aggregate demand (DAD) and dynamic aggregate supply (DAS). Assume that the tax increase occurs in period t and ends in period t+2. Clearly indicate the path of inflation and output in your graph. Describe the transition of both output and inflation to the long-run equilibrium in words