3. According to the IS curve, real output and real interest rates are negatively related. From 2007-2019 (so before Covi

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3. According to the IS curve, real output and real interest rates are negatively related. From 2007-2019 (so before Covi

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3 According To The Is Curve Real Output And Real Interest Rates Are Negatively Related From 2007 2019 So Before Covi 1
3 According To The Is Curve Real Output And Real Interest Rates Are Negatively Related From 2007 2019 So Before Covi 1 (346.69 KiB) Viewed 24 times
3. According to the IS curve, real output and real interest rates are negatively related. From 2007-2019 (so before Covid-19), real output fell considerably relative to expectations. What happened to the real interest rate (as measured by ten-year TIPS yields) from 2007-2019? b. Discuss what these observations (about real output and real yields) imply about the empirical validity of the IS curve. (Hint: you may want to consider the possibility that the IS curve may have shifted over time.)
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