Question
Explain what is meant by a do-nothing policy in the face of negative demand shock. Why is a do-nothing policy potentially the right policy in
Explain what is meant by a do-nothing policy in the face of negative demand shock. Why is a do-nothing policy potentially the right policy in fighting a negative supply shock, but not a negative demand shock? What is the main drawback to any do-nothing policy?
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Macroeconomics Principles And Policy
Authors: William J. Baumol, Alan S. Blinder
11th Edition
0324586213, 978-0324586213
