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c) How does output respond when the real interest rate increases by 0.01. d) Draw a graph of the baseline IScurve and the IScurve with
c) How does output respond when the real interest rate increases by 0.01. d) Draw a graph of the baseline IScurve and the IScurve with the multiplier. You should plot the \"shortterm fluctuation" (Xaxis) vs the real interest rate in the (Yaxis), for each case. Which curve is atter, and why? e) By how much does output increase if there is an aggregate demand shock that increases 56 by 0.01
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