Using the IS-Fed Rule model, exaplain what happen to the equilibrium values ofthe interest rate (r) and output (Y) if:a) An increase in P with no change in government spending.b) Increase in taxes with the Fed changing the money supply enough to keepinterest rate constant.This question was posted on here and was answered NOT using the Fed rule model. I was hoping to see how this would be done and GRAPHED using the IS-Fed rule.
The IS-Fed Rule model, exaplain what happen to the equilibrium
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