Consider the IS model and suppose the economy starts in a long run equilibrium. An increase in the real interest rate corresponds to A shift to the right of; positive A shift to the left of; positive A move along; positive a. b. C. the IS curve and short-run output becomes d. A shift to the left; zero e. A move along; negative
Consider the IS model and suppose the economy starts in a long run equilibrium. An increase in the real interest rate corresponds to A shift to the right of; positive A shift to the left of; positive A move along; positive a. b. C. the IS curve and short-run output becomes d. A shift to the left; zero e. A move along; negative
Chapter1: Making Economics Decisions
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Transcribed Image Text:23. Consider the IS model and suppose the economy starts in a long run equilibrium. An increase in the real
interest rate corresponds to
the IS curve and short-run output becomes
a.
b.
C.
A shift to the right of; positive
A shift to the left of; positive
A move along; positive
d. A shift to the left; zero
e. A move along; negative
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