Question: In the short run, the decrease in investment spending associated with business pessimism causes the price level to the price level people expected and the

In the short run, the decrease in investment spending associated with business pessimism causes the price level to the price level people expected and the quantity of output to the natural level of output. The business pessimism will cause the unemployment rate ts the natural rate of unemployment in the short run.
In the short run, the decrease in investment

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