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A Keynesian economist is recommending an increase in government spending and an increase in the money supply to reduce unemployment during a recession. Using the IS-LM framework what will be the results of this policy combination?


An increase in GDP with an indeterminate impact on the interest rate.


An increase in GDP, a decrease in the price level, and an increase in the real wage.


A decrease in GDP and an increase in the interest rate.


An indeterminate impact on GDP and a decrease in the interest rate.

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