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19 January, 00:29

Starting from short-run equilibrium, the following occurs: labor productivity rises and individuals expect higher (future) incomes. What is the effect on the price level and Real GDP in the short run?

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  1. 19 January, 03:13
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    Real GDP falls and price will rise because with the change in productivity is lesser than the income rise in near future leading to rise in prices and fall of output
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