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Consider the ISLMPC model. Suppose there is a change in the labor market condition, increasing workers' security (i.e., increasing the Z variable). All the following
Consider the ISLMPC model. Suppose there is a change in the labor market condition, increasing workers' security (i.e., increasing the "Z" variable). All the following consequences are correct, except 0 In the medium run, investment will increase 0 The Central Bank increases the interest rate in the medium run 0 Potential output decreases. O The natural rate of unemployment increases
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