-In the above figure, if the economy is initially at point a, the short- run effect of a cut in the cash rate is given by the movement from point

Name: -In the above figure, if the economy is initially at point a, the short- run effect of a cut in the cash rate is given by the movement from point
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A cut in the cash rate typically lowers interest rates, which stimulates investment and consumption, leading to an increase in output and a decrease in the unemployment rate in the short run.

-In the Above Figure, If the Economy Is Initially at Point