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.How is the new long-run equilibrium different from the original one?
A) the price level and real GDP are higher
B) the price level and real GDP are lower.
C) the price level is higher and real GDP is the same.
D) the price level is the same and real GDP is higher.
Correct Answer:
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Q21: Consider the exhibit below for the following
Q22: Pessimism
Suppose the economy is in long-run equilibrium.
Q23: Figure 33-6. Q24: Pessimism Q25: Figure 33-6. Q27: Consider the exhibit below for the following Q28: Consider the exhibit below for the following Q29: Pessimism Q30: Consider the exhibit below for the following Q31: Figure 33-5. Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
Suppose the economy is in long-run equilibrium.
Suppose the economy is in long-run equilibrium.
