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using the equilibrium in the labor market and the

Using the equilibrium in the labor market and the model IS-LM explain the different behavior described by the classic and keynessian schools when there is an increase in public spending (G).

a) Describe graphically how the FE, IS, LM curves move in both theories

b) Analyze the different equilibrium points.

c) Explain what happens with the prices, production and interest rates.

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