Use the ISMP model (including the output gap Phillips curve) to analyze how the Federal Reserve would respond to a significant positive demand shock. Assume
Use the IS–MP model (including the output gap Phillips curve) to analyze how the Federal Reserve would respond to a significant positive demand shock. Assume that the economy was in long-run macroeconomic equilibrium before the demand shock. Use a graph to show both the effect of the positive demand shock and how the Fed might respond.
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Authors: R Glenn Hubbard ,Anthony Patrick O'Brien
1st Edition
013255352X, 978-0132553520
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