1. How is the existence of surveys of business confidence likely to affect firms expectations and actions?...
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1. How is the existence of surveys of business confidence likely to affect firms’ expectations and actions?
2. Why, if the growth in output slows down (but is still positive), is investment likely to fall (i.e. the growth in investment be negative)? If you look at Figure 1, you will see that this happened in 2002 and in 2008.
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1 They will amplify changes in expectations If business people are gloomy and plan to red...View the full answer
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