Why will real output be affected in the short run

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Reference no: EM13151977

using IS-MP and PC graphs analyze the following scenario on the economy specifically, how and why will real output (GDP) be affected in the short run. lenders become fearful about the stability of the financial system. as a result, they demand a much higher return on loans than usual in order to compensate for the rich that they perceive. this is despite the fact that the federal reserve has undertaken a policy that lowers the federal funds rate to well below the marginal product of capital

Reference no: EM13151977

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