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(Solved): In the Neo Keynesian model used in class, what happens if businesses expect higher future profits ...
In the Neo Keynesian model used in class, what happens if businesses expect higher future profits while inflationary expectations decrease simultaneously? Choose all that apply. The price level increases. Real GDP may increase, decrease or remain unchanged. The price level decreases. Real GDP increases. Real GDP decreases. The price level may increase, decrease or remain unchanged.