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Economics

Suppose Congress wishes to reduce the budget deficit by reducing government spending. Use the IS-LM model to illustrate graphically the impact of the reduction in government spending on output and interest rates. (Be sure to label:

i. the axes;

ii. the curves;

iii. the initial equilibrium values;

iv. the direction the curves shift; and

v. the terminal equilibrium values.)

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9163928

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