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Pessimism Suppose the Economy Is in Long-Run Equilibrium. Then Because of of Corporate

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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 Optimism.In the short run what happens to the price level and real GDP?


Definitions:

Chronological Organization

An organizational method that arranges information or events in the order they occurred in time.

Spatial Organization

A method of structuring information based on physical space or geography, often used in descriptions or narratives.

Cause-and-effect Organization

A method of structuring written or spoken content that outlines reasons and their consequential outcomes.

Chronological Organization

An arrangement of events, activities, or information in the order of their occurrence in time.

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