Consumer spending was sluggish in late 2007, and economists worried that an inventory overhang a high

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Consumer spending was sluggish in late 2007, and economists worried that an inventory overhang — a high level of unplanned inventory investment throughout the economy — would make it difficult for the economy to recover anytime soon. Explain why an inventory overhang might, like the existence of too much production capacity, depress current economic activity

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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