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Suppose the Economy Was Initially in a Long-Run Equilibrium

question 136

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Suppose the economy was initially in a long-run equilibrium. Then the world economy expands so that foreign incomes rise. Australian aggregate demand ________ and eventually the money wage rate ________.


Definitions:

Personality Dimension

A measurable aspect of personality that indicates variations among individuals in terms of their typical behavior or feelings.

Risk-takers

Individuals who are willing to engage in behaviors or activities that involve a significant chance of loss or failure, often with the expectation of a potential reward.

Openness to Experience

A personality trait that reflects a person's willingness to seek out new experiences, entertain novel ideas, and display curiosity.

Big Five Model

A theory in psychology that describes personality traits across five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

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