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Suppose that firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run? Price level

Suppose that firms become more pessimistic about the future profitability of new investment. Which of the following will happen in the short run?

  1. Price level will increase
  2. Aggregate demand will shift to the right
  3. Output will increase
  4. Unemployment will rise

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