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Using the IS curve Yt=a-b(Rt-r), in the long run, a (blank 1) and (blank 2) so that the (blank 3). Blank 1 options: equals 1,

Using the IS curve Yt=a-b(Rt-r), in the long run, a (blank 1) and (blank 2) so that the (blank 3).

Blank 1 options: equals 1, equals 0, or is greater than 1

Blank 2 options: the real interest rate equals the MPK, the real interest rates exceeds the MPK, or the real interest rate equals 0

Blank 3 options: economy is in recession, economy is expanding, economies actual output equals its potential output

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