1. 4. Use the AS/AD model we have used in former chapters. Assume now a combination of...
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1. 4. Use the AS/AD model we have used in former chapters. Assume now a combination of strong austerity and structural reforms in goods and labor markets (as they were combined in the economic adjustment programs). What would you expect to happen? To what extent is it sensible to assume that structural reforms can compensate for the negative effects of austerity? Which factors might influence whether such a compensation is possible or not?
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Macroeconomics In Context: A European Perspective
ISBN: 125382
1st Edition
Authors: Sebastian Dullien, Neva Goodwin, Jonathan M. Harris, Julie A. Nelson, Brian Roach, Mariano Torras
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