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Answer to Question #125540 in Macroeconomics for Ayomide

Question #125540
suppose that consumers in turkey become more pessimistic about the health of thr turkish economy due to the bad news from europe and they started to expect a decline in their future income using AD-AS model what will happen to the output and price level in the short run? does the economy enter to a burst or boom period.
1
Expert's answer
2020-07-07T10:19:00-0400


when people are waiting decline in their future income, they more saving and less spend. The demand is decreased.

The economy enter to a burst.


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