Use the is-lm model to determine the effects of each of the


Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment, output, real interest rate, consumption, investment, and price level.

a) A reduction in the effective tax rate on capital increases desired investment.

b) The expected rate of inflation rises

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Microeconomics: Use the is-lm model to determine the effects of each of the
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