Question: During the 1960s, a major restructuring of the tax code decreased taxes for most people. Also during these years, the war in Vietnam required increased

During the 1960s, a major restructuring of the tax code decreased taxes for most people. Also during these years, the war in Vietnam required increased government purchases.

a. Which components of real GDP did these events affect?

b. How did these events affect the goods market?

c. Would these events affect the IS curve? Briefly explain.

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