Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift outward

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Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increases in the AD curve (hyperinflation countries like Germany before World War II, e.g.) don’t seem to have massive economic booms. Why does a small AD increase sometimes raise GDP much more than a giant AD increase?
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Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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