Business, 28.04.2021 01:00 fordkenae

In the short run, the increase in foreign spending on domestic goods associated with expansion abroad causes the price level to _ the price level people expected and the quantity of output to _ the natural level of output. The economic prosperity abroad will cause the unemployment rate to
the natural rate to unemployment in the short run.
Again, the following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural level of output of $600 billion, before the increase in foreign spending on domestic goods associated with expansion abroad.
During the transition from the short run to the long run, price-level expectations will and the __ curve will shift to the _

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