the effects of an interest rate cut in the is-mp model. set the stage by drawing the diagram corresponding to a situation where there are no ad shocks (normal-times ad) and the fed sets the real interest rate equal to the mpk. label the initial equilibrium as point a in the diagram. which of the statements below is correct?SRO will be negative and the unemployment rate will be above to the NRU. SRO will be 2 percent and the unemployment rate will be equal to 8 percent. SRO will be equal to zero and the unemployment rate will be equal to the NRU. SRO will be positive and the unemployment rate will be below the NRU. SRO will be 8 percent and the unemployment rate will be equal to 2 percent. SRO will be 21 trillion dollars and the unemployment rate will be equal to 2 percent.
