(a) With the aid of appropriate analyses, show the impact of each of the rate of the following equilibrium real interest rate and the equilibrium real output, using IS-LM model in your analyses.
(i) Increase in multiple taxation on public goods and essential commodities
(ii) Buying of treasury bills from the public
(iii) Removal of subsidy on essential goods
(iv) Mass retrenchment of public civil servant
(v) Reduction in the liquidity ratio
Q2.
With the aid of appropriate analyses, show the impact of each of the rate of the following equilibrium real interest rate and the equilibrium real output using IS-LM model in your analyses.
(i) Increase in multiple-taxation on public goods and essential commodities
(ii) Buying of treasury bills from the public
(iii) Removal of subsidy on essential goods
(iv) Mass retrenchment of public civil servant
(v) Reduction in the liquidity ratio