6. Suppose that we initially have the following values for the variables that make up the...

 

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6. Suppose that we initially have the following values for the variables that make up the IS curve: b=0.5, a=0, Rt: == 5%, x = 0 If im increases by 2% and the real interest rate falls by 4%, what will be the change in short-run output? Show your work. 6. Suppose that we initially have the following values for the variables that make up the IS curve: b=0.5, a=0, Rt: == 5%, x = 0 If im increases by 2% and the real interest rate falls by 4%, what will be the change in short-run output? Show your work.