Assume that the policymakers in a closed economy want to increase output without changing interest rates. How would your policy mix affect the

Assume that the policymakers in a closed economy want to increase output without changing interest rates. How would your policy mix affect the components of GDP? Explain your answer and the adjustment processes that take place with the help of an IS-LM diagram.

To increase the output without changing interest rates, the policy makers would be required touse policy mix of fiscal as well as monetary policy. More specifically, the policymakers need touse...