Question: I do not understand how to answer this question PART A (i) Using an lS/LM diagram briey explain the likely effects of a scal contraction

I do not understand how to answer this question

PART A (i) Using an lS/LM diagram briey explain the likely effects of a scal contraction on both the domestic interest rate and the level of economic activity. [5] (ii) Using a second IS/LM diagram briey explain the likely effects of a monetary contraction on both the domestic interest rate and the level of economic activity. [5] [Total 10] PART B

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