For each of the following events ,explain the short-run and long-run effects on output and the price level , assuming policymakers take no action. aThe stock market declines sharply, reducing consumers’ wealth bA technological improvement raises productivity cThe federal government increases spending on national defense dA recession overseas causes foreigners to buy fewer U.S. goods
For each of the following events ,explain the short-run and long-run effects on output and the price level , assuming policymakers take no action. aThe stock market declines sharply, reducing consumers’ wealth bA technological improvement raises productivity cThe federal government increases spending on national defense dA recession overseas causes foreigners to buy fewer U.S. goods
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
Problem 9PA
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For each of the following events ,explain the short-run and long-run effects on output and the price level , assuming policymakers take no action.
aThe stock market declines sharply, reducing consumers’ wealth
bA technological improvement raises productivity
cThe federal government increases spending on national defense
dA recession overseas causes foreigners to buy fewer U.S. goods
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