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Assume real GDP is growing at 3%, inflation is a slow and stable 2%, and spending is growing at 6%. Now, assume a new robotic
Assume real GDP is growing at 3%, inflation is a slow and stable 2%, and spending is growing at 6%.
- Now, assume a new robotic technology comes into the world that makes all workers more productive (for you Jetsons fans, let's say everyone now has a Rosey the Robot at their disposal). Is this a shock to AD or LRAS? How will this shock impact inflation and real GDP growth?
- Assume a pandemic hits the world and consumers tighten their belts due to uncertainty about the future. Is this a shock to AD or LRAS? How will this shock impact inflation and real GDP growth?
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