Exhibit: IS-LM Fiscal Policy 
Based on the graph, starting from equilibrium at interest rate r1 and income Y1, a tax cut would generate the new equilibrium combination of interest rate and income:
Definitions:
Geographic Market
An area or region wherein a company operates and competes for customers, often defined by political boundaries or population demographics.
Sherman Act
A U.S. antitrust law passed in 1890 that prohibits monopolistic business practices and promotes competition.
Price-Fixing Scheme
An illegal arrangement between parties to set the price of goods or services at a certain level, often to limit competition.
Sherman Act
An anti-monopoly U.S. legislation which outlaws monopolistic business practices.
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