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 Global Edition

ISBN: 978-1292318615

10th Edition

Authors: Andrew Abel ,Ben Bernanke ,Dean Croushore

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