Pessimism
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time.
-Refer to Stock Market Boom 2015.In the short run what happens to the price level and real GDP?
A) both the price level and real GDP rise.
B) both the price level and real GDP fall.
C) the price level rises and real GDP falls.
D) the price level falls and real GDP rises.
Correct Answer:
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Q35: Pessimism
Suppose the economy is in long-run equilibrium.
Q36: Pessimism
Suppose the economy is in long-run equilibrium.
Q37: Figure 33-5. Q38: Pessimism Q39: Pessimism Q41: Pessimism Q42: Pessimism Q43: Pessimism Q44: Pessimism Q45: If output is above its natural rate,then
Suppose the economy is in long-run equilibrium.
Suppose the economy is in long-run equilibrium.
Suppose the economy is in long-run equilibrium.
Suppose the economy is in long-run equilibrium.
Suppose the economy is in long-run equilibrium.
Suppose the economy is in long-run equilibrium.
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