Question
Using the IS-PC-MR model, provide a detailed period by period explanation of how a negative aggregate demand shock can lead the economy into a deflation
Using the IS-PC-MR model, provide a detailed period by period explanation of how a negative aggregate demand shock can lead the economy into a deflation trap
** please include a diagram thank you
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Economics of Strategy
Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer
6th edition
978-1118273630, 111827363X, 978-1118319185
