For each of the following events, explain the short run and long-run effects on output and the

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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 policy makers take no action.

a. The stock market declines sharply, reducing consumers’ wealth.

b. The government increases spending on national defence.

c. A technological improvement raises productivity.

d. A recession overseas causes foreigners to buy fewer domestic goods.

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Economics

ISBN: 124344

2nd Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 02, 2024 07:00 AM

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For each of the following events, explain the short run and long-run effects on output and the

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Economics

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