Question

What is the impact of a rise in price exprectations in the short run and in...

What is the impact of a rise in price exprectations in the short run and in the long run? Try to show all in OS-LM, Ms-Md, AS-AD curves one by one

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Answer #1

In short-run rise in price represents the high demand for the product which is a good sign for the growth of a country. But in long-run price will be continuously increasing it will leads to a inflation which have an adverse effect.

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