100%(1)1 out of 1 people found this document helpful
This preview shows page 1 out of 1 page.
ECONOMICS 3120QUIZ 10FALL 2008DR. WILLIE J. BELTON, JR.10-24-20081. In then IS-LM models adecrease inthe nominal money supply causes adecreasein output. However in the medium run the decrease in output disappears asinterest rate return to the natural real rate of interest. Explain how the deviation ofthe real interest rate from the natural real rate of interest and the deviation ofoutput from the full employment output level are both representations ofthe same