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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 long run,the change in price expectations created by optimism shifts


Definitions:

Supplier Power

Refers to the ability of providers of goods or services to dictate terms and influence prices in the marketplace due to their strong position vis-à-vis buyers.

Competitive Edge

The unique advantage a company or product has over its competitors, making it more attractive to consumers or clients.

Lower Costs

The reduction in the expenses incurred in the production of goods or services, enhancing a company's profitability.

Innovative

Innovative refers to the introduction of new ideas, methods, or products that aim to improve efficiency, effectiveness, or competitive advantage.

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