1. Use the IS-LM model to show the long-run effects of the government increasing the corporate tax rate on the general e
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1. Use the IS-LM model to show the long-run effects of the government increasing the corporate tax rate on the general e
1. Use the IS-LM model to show the long-run effects of the government increasing the corporate tax rate on the general equilibrium values of employment, output, the real interest rate, consumption, investment, and the price level. Assume that prices and wages are flexible. Show what is happening on the graph, but also explain why certain curves are shifting. Full-employment line, FE LM curve Real interest rate, IS curve
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