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Deep recession in europe

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Reference no: EM13926473

Explain what happens to output in the short run in each of the following circumstances:

a) There is deep recession in Europe.

b) Housing values rise above their trend.

c) Mortgage lenders raise interest rates.

d) The government decides to close 20 percent of its military bases around the country.

e) The long-run interest rate rises.

Reference no: EM13926473

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