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Q3. a. Suppose government increases the tax. Explain, using the IS-LM framework, what the impact will be on equilibrium income and interest rate. (5) b.

Q3. a. Suppose government increases the tax. Explain, using the IS-LM framework, what the impact will be on equilibrium income and interest rate. (5) b. Derive the Keynesian Aggregate Supply Curve. Explain how it is different from Classical Aggregate Supply curve

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