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In the short run, the price level decreases. Firms hire workers and production. The quantity of real GDP . As the demand for labor decreases
In the short run, the price level decreases. Firms hire workers and production. The quantity of real GDP . As the demand for labor decreases and labor contracts expire, workers will accept lower wages. As wages fall in the run, firms increase production in the long run and output rises
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International Economics
Authors: James Gerber
6th edition
978-0132950145, 132950146, 132948915, 978-0132948913
