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If consumer sentiment suddenly improves: (Consumers and business suddenly expect economic growth to increase and consumers are more willing to spend.): What will be the

If consumer sentiment suddenly improves: (Consumers and business suddenly expect economic growth to increase and consumers are more willing to spend.):

  1. What will be the effect on money demand, money supply, and interest rates? Please explain.
  2. What will be the effect on AE, and GDP? Please explain
  3. In the short-run: What will be the effect on AD and SRAS? What will be the effect on the average price level? Please explain.
  4. In the long-run: What will be the impact on GDP and the average price level?

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