1.1. Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift...

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1.1. Here is a puzzle. A country with a relatively small positive aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increases in the AD curve (hyperinflation countries like Germany before W odd War II , e.g.) don't seem to have massive economic booms. Why does a small AD increase sometimes raise GDP much more than a giant AD increase?

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Modern Principles Macroeconomics

ISBN: 124428

2nd Edition

Authors: Tyler Cowen ,Alex Tabarrok

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