Explain What Happens to the Macroeconomy in the Short Run

question 80

Essay

Explain what happens to the macroeconomy in the short run in each of the following circumstances:
(a) There is deep recession in Europe.
(b) Housing values rise above their trend.
(c) Mortgage lenders raise interest rates.
(d) The government decides to close 20 percent of its military bases around the country.
(e) The long-run interest rate rises.

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Definitions:

Effective Listening

The act of fully hearing, understanding, and responding to messages communicated by others.

Active Listening

The act of fully engaging, comprehending, replying, and retaining what is communicated during a conversation.

Understood

Recognized or perceived clearly by mind.

Relative Orientation

The perspective or approach taken in comparison to others or in relation to a specific context or standard.