One of the hypotheses for the increased stability of the U.S. economy since 1985 is that demand

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One of the hypotheses for the increased stability of the U.S. economy since 1985 is that demand shocks have become smaller and less important. Explain why a demand shock can be thought of as a shift of the IS curve. Then discuss the hypothesis concerning demand shocks and the increased stability of the U.S. economy in terms of shifts of the IS curve.
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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