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Economics

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

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

2. the expected rate of inflation rises.

3. an influx of working-age immigrants increases labor supply(ignore any other possible effects of increased population).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91837684

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