Question
During the period 1973-1975, the United States experienced a deep recession and a simultaneous sharp increase in the price level. Based on the AD-AS model
During the period 1973-1975, the United States experienced a deep recession and a simultaneous sharp increase in the price level. Based on the AD-AS model , was this recession a result of a supply shock or a demand shock? Briefly explain how the economy would adjust back to potential GDP in the long run.
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Valuing The Earth, Economics, Ecology, Ethics
Authors: Herman E Daly, Kenneth N Townsend
2nd Edition
0262540681, 9780262540681
