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

By using

  1. AD-AS Curve
  2. 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:

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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