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# use the IS- LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment,output, real

use the IS- LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment,output, real interest rate, consumption, investment and price level.

a. a reduction in the effective tax rate on capital increases desired investment.

b.the expected rate of inflation rises.c .an influx of working age immigrants increases labor supply (ignore any other possible effects of increased population)

d. increased usage of automatic teller machines reduces the demand for money