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For each of the following changes,what happens to the real interest rate and output in the long run,after the price level has adjusted to restore general equilibrium? How would the results differ,if at all,between the classical and Keynesian model? Draw a diagram for each part to illustrate your result.
(a)Wealth rises.
(b)Money supply rises.
(c)The future marginal productivity of capital increases.
(d)Expected inflation declines.
(e)Future income declines.
Stable Internal
Refers to internal, enduring attributes or traits of a person that are consistent across different situations and over time.
Unstable External
Contexts or environments that are unpredictable and change frequently, affecting behavior or performance.
Stable External
Factors outside of an individual that are consistent and unchanging, often influencing behavior and perceptions.
Incremental
Describes a process of making changes or improvements in small, gradual steps rather than large, significant leaps.
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