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Using AD and AS model, graphically explain the following: Suppose that the Government increases spending and simultaneously raises taxes. a) Show the effect of this

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Using AD and AS model, graphically explain the following: Suppose that the Government increases spending and simultaneously raises taxes. a) Show the effect of this change on AD schedule. b) How does this affect output and price level in the Keynesian case. c) How does this affect output and price level in Classical case. _ .- 1. .- A

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