Suppose the parameters of the IS curve are = 0, = 3/4, = 2%

Question:

Suppose the parameters of the IS curve are ā = 0, = 3/4, = 2% and the real interest rate is initially R = 2%. Explain what happens to short-run output in each of the following scenarios (consider each separately):
(a) The real interest rate rises from 2% to 4%.
(b) The real interest rate falls from 2% to 1%.
(c) āc increases by 1 percentage point.
(d) āg decreases by 2 percentage points.
(e) āim decreases by 2 percentage points.