Suppose we assume that initially
,
,
;if
Rises 2 percent and the real interest rate rises 2 percent,short-run output:
A)rises 2 percent.
B)rises 1 percent.
C)falls 2 percent.
D)rises 4 percent.
E)does not change.

Question

Suppose we assume that initially 
, 
, 
;if 
Rises 2 percent and the real interest rate rises 2 percent,short-run output:
A)rises 2 percent. 
B)rises 1 percent. 
C)falls 2 percent. 
D)rises 4 percent. 
E)does not change.

Quizplus · Accepted Answer

The Answer of Suppose we assume that initially 
, 
, 
;if 
Rises 2 percent and the real interest rate rises 2 percent,short-run output:
A)rises 2 percent. 
B)rises 1 percent. 
C)falls 2 percent. 
D)rises 4 percent. 
E)does not change.

Suppose We Assume That Initially