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Use the IS-LM diagram to describe the short-run and long-run effects of the following changes on national income, the interest rate, the price level, consumption,
Use theIS-LMdiagram to describe the short-run and long-run effects of the following changes on national income, the interest rate, the price level, consumption, investment, and real money balances.
- An increase in the money supply.
- An increase in government purchases.
- An increase in taxes.
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