Suppose the same scenario from the previous question (improved international relations and increased confidence in policy makers, individuals and businesses become more optimistic about the future and stay this way for some time) occurs. In the long run the price level ________ and real GDP ___________. Group of answer choices rises... is unchanged rises... rises falls... is unchanged falls.... rises
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The scenario involves improved international relations and increased confidence in policy makers. This leads to individuals and businesses becoming more optimistic about the future and maintaining this optimism for some time. Show more…
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