8. In order to address its Federal Budget Deficit, the GreekGovernment increased the tax rate by 7% for the top 50thpercentile of household incomes. Included in this law, thegovernment loosened capital requirements for banks lending tostart-up businesses in its newly emerging biochemical sector. Ifall else remains equal, using the concept of Aggregate Demand andAggregate Supply, what will happen to Greece’s GDP and PriceLevel?Ă‚Â Ă‚Â
