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Suppose That a Severe Shock That Decreases Investment Demand Hits

question 3

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Suppose that a severe shock that decreases investment demand hits the United States.Which of the following can we expect to occur according to the real business cycle model?


Definitions:

Cultures

The beliefs, customs, arts, and institutions of a society, group, place, or time.

Norms

Socially accepted rules or standards of behavior expected within a group or society.

Social Life

The part of an individual's time that is spent interacting with others, participating in social activities and forming relationships.

Culture

The shared beliefs, customs, arts, institutions, and all other products of human work and thought created by a group of people at a particular time.

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