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Suppose a poll showed business owners felt very upbeat about the coming business year and felt that opportunities were growing even though the current unemployment rate of $7\%$ was higher than the natural rate of $5\%$. Which of the following would be an expected economic behavior?


Aggregate demand would drop.


Price level would increase and there would be more output.


The aggregate supply curve would shift left.


Price level would decrease and there would be lower incomes.


Interest rates would decrease and there would be less borrowing.

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