Question
Suppose that a decline in housing prices and a decline in stock market valuations lowers wealth and leads people to spend less. This is an
Suppose that a decline in housing prices and a decline in stock market valuations lowers wealth and leads people to spend less. This is an example of
a change in the economy's productive capacity that changes the long-run growth trend | ||
a demand shock that changes the long-run growth trend | ||
a demand shock that generates a short-run fluctuation, taking the economy away from its long-run growth trend | ||
a demand shock that affects neither short-run fluctuations nor the long-run growth trend |
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
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