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

question 102

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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 Pessimism.In the long run,the change in price expectations created by pessimism shifts


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