Question: By using AD-AS and Phillips Curve analysis, explain what happens to output and price level as well as unemployment and inflation rates for each of

By using AD-AS and Phillips Curve analysis, explain what happens to output and price level as well as unemployment and inflation rates for each of the situations listed below, show the graph as well:

a) The government reduces the tax rate for individual income in order to encourage households' spending.

b) Central Bank increases the required reserve ratio.

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