In the short-run (before P adjusts) version of the IS-LM model, a temporary decrease in government purchases

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In the short-run (before P adjusts) version of the IS-LM model, a temporary decrease in government purchases causes the real interest rate to (blank) and output to (blank):
a. rise; rise
b. rise; fall
c. fall; rise
d. fall; fall
Explain your answer.

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Question Posted: Mar 05, 2018 10:09 AM

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In the short-run (before P adjusts) version of the IS-LM model, a temporary decrease in government purchases

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Exploring Economics

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