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Refer to the following figure when answering the following questions.
Figure 11.5: IS Curve
-Consider Figure 11.5. If the economy initially is at its long-run equilibrium and the real interest rate increases, the economy moves from point ________ to point ________.
Simultaneous Game
A situation in game theory where all players make their decisions or moves at the same time without knowledge of the others' choices.
Shoplifter
A person who steals goods from a store while pretending to be a customer.
Nash Equilibrium
A concept in game theory where no player can benefit by changing their strategy while the other players keep theirs unchanged, leading to a situation of mutual best response.
Simultaneous Game
A game theory model where players make decisions or choose strategies at the same time, without knowledge of the others' choices.
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