Quick and easy fill in the blank.
\fFor each of the following, assume that, when the economy is in disequilibrium, only the labor market is out of equilibrium; assume also that for a short period firms are willing to produce enough output to meet the aggregate demand for output. a. Suppose that the price level is fixed in the short run so that the economy doesn't reach general equilibrium immediately after a change in the economy. Determine the short-run effects on the real interest rate and output when the expected rate of inflation falls. Real Interest Rate Output b. Suppose that the price level is fixed in the short run so that the economy doesn't reach general equilibrium immediately after a change in the economy. Determine the short-run effects on the real interest rate and output when an increase in consumer optimism increases desired consumption at each level of income and the real interest rate. Real Interest Rate Output c. Suppose that the price level is fixed in the short run so that the economy doesn't reach general equilibrium immediately after a change in the economy. Determine the short-run effects on the real interest rate and output when there is an increase (temporarily) in government purchases. Real Interest Rate Output d. Suppose that the price level is fixed in the short run so that the economy doesn't reach general equilibrium immediately after a change in the economy. Determine the short-run effects on the real interest rate and output when there is an increase in lump-sum taxes, with no change in government purchases. Consider both the case in which Ricardian equivalence holds and the case in which it doesn't. When Ricardian Equivalence holds Real Interest Rate Output When Ricardian Equivalence does not hold. Real Interest Rate Output Click to select your answer(s).Real Interest Rate E 0L the short mn 5::- that t! ate and output 1when a falls. remains unchanged. I .eal Interest Rate . e5