Question: 2. Using the IS-LM model, you discuss the short and long run impacts of the following events on national output, the interest rate, the price

2. Using the IS-LM model, you discuss the short and long run impacts of the following events on national output, the interest rate, the price level, consumption, and investment.

a. Increase in money supply

b. Increase in government spending

c. Tax increases

3. Describe the theories underlying the aggregate supply function.

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