Show the impact on the IS curve of an increase in government spending. Make sure to draw in the LM curve as well and illustrate the impact on the equilibrium interest rate and the aggregate output level.

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The Answer of Show the impact on the IS curve of an increase in government spending. Make sure to draw in the LM curve as well and illustrate the impact on the equilibrium interest rate and the aggregate output level.

Show the Impact on the IS Curve of an Increase