EconomicsQuestion 91Consider the IS curve YE ā – b(R – F)|, where b = 2, = 1/5, and R – ř = 0.01.If there is a positive demand shock where the economy goes from ā = -0.01 to ā = 0.0, then short-run output changes by percentage points (enter a negative number for a fall in short-run outputand a positive number for a rise in short-run output).

The IS-LM model is a macroeconomic framework that illustrates the interaction between real output in…

- 7), where b = 2, = 1/5, and R - T = 0.01. ock where the economy goes from ā = -0.01 to ā = 0.0, then short- ercentage points (enter a negative number for a fall in short-run output in short-run output).

- 7), where b = 2, = 1/5, and R - T = 0.01. ock where the economy goes from ā = -0.01 to ā = 0.0, then short- ercentage points (enter a negative number for a fall in short-run output in short-run output).

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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