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The food processing industry in Richland accounts for 20 percent of its GDP. Which of the following ...

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The food processing industry in Richland accounts for 20 percent of its GDP. Which of the following ...

The food processing industry in Richland accounts for 20 percent of its GDP. Which of the following will happen if firms in this industry become pessimistic about the future demand for their products? Assume that consumption and government expenditure remain unchanged.

▸ Richland's interest rate will increase.

▸ Richland's unemployment rate will fall.

▸ Richland's inflation rate will increase.

▸ Richland's GDP will fall.

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Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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