Economists argue that the Great Depression was initially caused by a decline in consumer spending in the US. The recession was then made it worse by the American government who increased taxes and by the American central bank who implemented contractionary monetary policy. Use the IS-LM model to illustrate graphically that these policies would make a recession worse. Plot the Keynesian cross, the market for money and the IS-LM model. Be sure to label:

i. the axes

ii. the curves

iii. the initial equilibrium

iv. the direction the curves shift