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Q6) Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model, graphically illustrate and explain what effect a tax
Q6) Based on your understanding of the aggregate supply and aggregate demand model and the IS-LM model, graphically illustrate and explain what effect a tax increase will have on the economy.In your graphs, clearly illustrate the short-run and medium-run equilibrium.
Q7) Based on your understanding of the Phillips curve, is it possible for the unemployment rate to increase while inflation increases?Explain.
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