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34. Consider the IS-LM-PC model in which there is a discovery of a new source of cheap and reliable clean energy. In the medium run:
34. Consider the IS-LM-PC model in which there is a discovery of a new source of cheap and reliable clean energy. In the medium run: real wages and potential output will be higher and the natural real rate of interest will be lower. b) real wages, potential output and the natural real rate of interest will be higher. real wages will remain constant but potential output and the natural rate of interest will be higher. d) real wages, the natural rate of unemployment and the natural rate of interest will be lower
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