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    Principles of Economics Study Set 12
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    Exam 23: The Nature and Causes of Economic Fluctuations
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    Suppose Business Executives Become Very Pessimistic and Reduce Their Investment
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Suppose Business Executives Become Very Pessimistic and Reduce Their Investment

Question 25

Question 25

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Suppose business executives become very pessimistic and reduce their investment spending. Sketch a diagram that illustrates how this change in opinion affects real GDP.

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A pessimistic attitude by busi...

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