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Aggregate Demand and Supply Analysis

Question 60

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Aggregate Demand and Supply Analysis Aggregate Demand and Supply Analysis -In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS and AD curves,as shown in the figure.The equilibrium real interest rate is ________ percent. A) 3 B) one C) 2.5 D) 2 E) zero
-In the figure above,assume that output is $10.5 trillion,while potential output is $12 trillion.Suppose that a combination of fiscal stimulus and recovery of consumer and business confidence shifts the IS and AD curves,as shown in the figure.The equilibrium real interest rate is ________ percent.


A) 3
B) one
C) 2.5
D) 2
E) zero

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