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Unformatted text preview: employment, the real wage, national savings, consumption, investment, the real interest rate, and the price level. 3. Can monetary policy be used to offset the real interest rate effects of a decline in desired investment, if prices adjust quickly to restore general equilibrium? Explain. 4. Describe the effects, in both the very short run and the long run, of a decline in the money supply. Explain what happens to real output and the price level....
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This note was uploaded on 04/15/2010 for the course ECON 291 taught by Professor J liu during the Summer '07 term at Simon Fraser.
- Summer '07
- J Liu