Calculations with the is curve: suppose the parameters of the is curve are a¯ = 0, ¯b = 3/4, r¯ = 2% and the real interest rate is initially r = 2%. explain what happens to short-run output in each of the following scenarios (consider each separately): the real interest rate rises from 2% to 4%. the real interest rate falls from 2% to 1%. a_c increases by 1 percentage point. a_g decreases by 2 percentage point. a_im decreases by 2 percentage point.

Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration