5. It is sometimes argued that economic growth that is too rapid will be associated with inflation....

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5. It is sometimes argued that economic growth that is "too rapid" will be associated with inflation. Use AD-AS analysis to show how this statement might be true. When this claim is made, what type of shock is implicitly assumed to be hitting the economy?

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Macroeconomics

ISBN: 126148

6th Edition

Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore

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