Explain what happens to the macroeconomy in the short run in each of the following circumstances:
(a) There is deep recession in Europe.
(b) Housing values rise above their trend.
(c) Mortgage lenders raise interest rates.
(d) The government decides to close 20 percent of its military bases around the country.
(e) The long-run interest rate rises.

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The Answer of Explain what happens to the macroeconomy in the short run in each of the following circumstances:
(a) There is deep recession in Europe.
(b) Housing values rise above their trend.
(c) Mortgage lenders raise interest rates.
(d) The government decides to close 20 percent of its military bases around the country.
(e) The long-run interest rate rises.

Explain What Happens to the Macroeconomy in the Short Run