Question: Question 1 2 ( 1 point ) Imagine that the economy is in long - run equilibrium. Then, perhaps because of improved international relations and

Question

12 (1

point

)

Imagine that the economy is in long

-

run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time.

In the long run, the change in price expectations created by optimism shifts

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Question 12(1 point) Imagine that the economy is in long-run equilibrium.

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