2. Now use the AD-AS model to analyze the same scenario as above. Again, make sure to explain why certain curves are shi
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the gove 1. Use the IS-LM model to show the long-run casing the cu 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, Foll-employment Hine, FE La curve Realine - - IS curve 2. Now use the AD-AS model to analyze the same scenario as above. Again, make sure to explain why certain curves are shifting as well as tell me what the long-run outcomes are for the general equilibrium levels of employment, output, the real interest rate, consumption, investment, and the price level. LRAS SRAS AD