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People are more optimistic about the future Imagine that the economy is in long - run equilibrium. Then, perhaps because of improved international relations and
People are more optimistic about the future
Imagine that the economy is in longrun equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.
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Imagine that the economy is in longrun equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.
Which curve shifts and in which direction?
AS shifts right
AD shifts left
AS shifts left
AD shifts right
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