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    Macroeconomics Study Set 26
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    Exam 11: The Is Curve
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    Suppose We Assume That Initially
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Suppose We Assume That Initially

Question 86

Question 86

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Suppose we assume that initially Suppose we assume that initially    ,b±= 1,    ;if    rises 2 percent and the real interest rate rises 2 percent,short-run output rises 2 percent.
,b±= 1, Suppose we assume that initially    ,b±= 1,    ;if    rises 2 percent and the real interest rate rises 2 percent,short-run output rises 2 percent.
;if Suppose we assume that initially    ,b±= 1,    ;if    rises 2 percent and the real interest rate rises 2 percent,short-run output rises 2 percent.
rises 2 percent and the real interest rate rises 2 percent,short-run output rises 2 percent.

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