In early 1990s, President Clinton proposed large tax increase in an effort to balance the government budget. Assume that prices are completely fixed in the short run and that initially the U. S. economy was at full equilibrium output. Use both the IS-LM and AS-AD tools to analyze the implications of the tax increase in the short and long run. Be sure to label the axes, curves, use arrows to show shifts in curves, and mark the equilibrium points: "A" for initial equilibrium; "B" for the short-run equilibrium, "C" for the long-run equilibrium. a. Using both the IS-LM and AS-AD models graphically illustrate how the large tax increase would affect the IS curve, LM curve, SRAS curve, and AD curve in the short-run and long-run. b. What happens to the following variables in the short run relative to the initial level (increases, falls, no change, can’t tell): output, interest rate, prices, investment, consumption, unemployment rate. c. What happens to the following variables in the long run relative to the initial level (increases, falls, no change, can’t tell): output, interest rate, prices, investment, consumption, unemployment rate. 2. Recent technological advances