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Assume the price level is fixed in the short run so that the economy does not reach a general equilibrium immediately after a change in the economy. For each of the changes what are the short-run effects on the real interest rate and output? Assume in the short run, firms are willing to produce enough output to meet the aggregate demand for output.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9494079

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