4. When consumer spending is sluggish an inventory overhanga high level of unplanned inventory investment throughout the

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4. When consumer spending is sluggish an inventory overhang—a high level of unplanned inventory investment throughout the economy—can make it difficult for the economy to recover quickly. Explain why an inventory overhang might, like the existence of too much production capacity, depress current economic activity

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Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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