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Assume there are no employee or employer misperceptions, wages are not sticky, and prices are not sticky. There is an increase in interest rates.
Assume there are no employee or employer misperceptions, wages are not sticky, and prices are not sticky. There is an increase in interest rates. Which of the following correctly states the outcome? Equilibrium real GDP would increase, unemployment would decrease, and the equilibrium price level would increase. O Equilibrium real GDP would decrease, unemployment would increase, and the equilibrium price level would decrease.. O Equilibrium real GDP would remain the same, unemployment would remain the same, and the equilibrium price level would decrease. O Equilibrium real GDP would remain the same, unemployment would remain the same, and the equilibrium price level would increase.
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