Asked by Cody
Describe how each of the following will affect the equilibrium price level(P) and real output(Y) in the short run(Assume the economy is initially in the long-run equilibrium.)
(a) A reduction in the real interest rate
(b) A widespread fear of deep recession on the part of consumers
(c) An increase in the average wage rate
(a) A reduction in the real interest rate
(b) A widespread fear of deep recession on the part of consumers
(c) An increase in the average wage rate