Suppose a negative aggregate demand shock causes short-run output to drop to -1%.

Suppose a negative aggregate demand shock causes short-run output to drop to -1%. To stimulate investment and bring the economy back to potential output the interest rate decreases by 1 percentage point. However, as a result investment increases more than expected and short-run output reaches 1%. This result could be caused by:

1. An increase in the consumption share of potential output
2. An increase in the government purchases share of potential output
3. A decrease in the import share of potential output
4. The presence of a consumption multiplier
5. All of these are correct