Based on Your Understanding of the AS- AD Model and the IS-

question 54

Essay

Based on your understanding of the AS- AD model and the IS- LM model, graphically illustrate and explain what effect a tax increase will have on the economy. In your graphs, clearly illustrate the short- run and medium- run equilibria.

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Definitions:

Radical Feminism

A perspective within feminism that calls for a radical reordering of society to eliminate male supremacy in all social and economic contexts.

Transformational Project

An initiative that fundamentally changes the nature, direction, or functioning of an entity, often involving comprehensive restructuring.

Two Faces of Power

A theory suggesting that power in politics operates on two levels: decision-making and agenda-setting, where the latter can effectively control which issues come to the foreground.

Bachrach and Baratz

Scholars known for their work in political science, particularly on the second face of power, which involves the ability not just to make decisions but to control the agenda and prevent certain issues from being discussed.