-Consider Figure 19.2.If __________ is the IS curve without the interest rate gap,__________ is the IS curve that includes the interest rate gap.

Name: -Consider Figure 19.2.If __________ is the IS curve without the interest rate gap,__________ is the IS curve that includes the interest rate gap.
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Question

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The IS curve without the interest rate gap is typically the original IS curve, which is IS1. When the interest rate gap is included, the IS curve shifts, which is represented by IS5.