Question: Using the aggregate demand and aggregate supply model explain the impact of each of the following government policies. In each case, indicate which curve will

Using the aggregate demand and aggregate supply model explain the impact of each of the following government policies. In each case, indicate which curve will shift, which direction, and what will happen to the price level and the aggregate output?

1. There is an increase in taxes on households.

2. There is an increase in government spending.

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