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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:

Dependent

Relying on or requiring the support of something else for its existence, validity, or significance.

Social

Relating to society or its organization, focusing on the interactions and relationships between individuals within a community.

Diagramming Method

The diagramming method involves visually representing ideas, concepts, or processes using diagrams to facilitate understanding or analysis.

Proposition

A statement or expression that presents an idea, opinion, or claim, typically one that can be true or false.

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