If an economy starts in a long run equilibrium and then there is a large decrease in the stock market and decrease in consumer wealth, what happens to the expected and actual prices? Does this affect real wages and price changes in other countries as well?

If an economy starts in a long run equilibrium and then there is a large decrease in the stock market and decrease in consumer wealth, what happens to the expected and actual prices? Does this affect real wages and price changes in other countries as well?

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 13QP

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