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Consider Figure 11.8 below, which shows the output gap and the NASDAQ stock market index from 1995-2001. NASDAQ has a lot of "tech" firms that drove the rise in the stock market index in the late 1990s, as shown. As one can see, the output gap also rose to about 2.8 percent in April 2000. Explain this graph using the IS curve.Figure 11.8: Output Gap and NASDQ Index
Fluid Intelligence
The ability to reason and solve new problems independently of previously acquired knowledge.
Intelligence Gene
A hypothetical gene proposed to have a significant impact on an individual's intelligence, although intelligence is influenced by many genetic and environmental factors.
Prenatal Factors
Aspects that influence an individual's development before birth, including maternal health, nutrition, and exposure to toxins.
Postnatal Factors
Influences or events that affect an individual after birth.
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