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Use the IS-LM model to show what happens to output and the interest rate in equilibrium....

Use the IS-LM model to show what happens to output and the interest rate in equilibrium. Briefly explain how equilibrium is adjusting in the goods and/or money markets. One IS-LM graph is necessary for each part. Clearly label your graph for full credit.

(a) The central bank increases the money supply

(b) The government increases transfers to households

(c) The stock markets are booming and household wealth increases

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