Essay
In the IS-MP framework, starting from macroeconomic equilibrium at a 0% output gap:
(a) a fall in the real interest rate will lead to _____ (a recession, economic growth).
(b) a fall in the real interest rate will lead to _____ (a negative output gap, a positive output gap).
(c) a fall in the real interest rate will lead to _____ (lower sales forecasts, higher sales forecasts).
Correct Answer:
Verified
Correct Answer:
Verified
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