Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that is accompanied by a decline in inflation. What types of shocks could have possibly triggered such a recession?
Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that is accompanied by a decline in inflation. What types of shocks could have possibly triggered such a recession?
Chapter17: The Philips Curve And Expetactions Theory
Section: Chapter Questions
Problem 16SQ
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a) Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that is accompanied by a decline in inflation. What types of shocks could have possibly triggered such a recession?
b) Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that is accompanied by an increase in inflation. What types of shocks could have possibly triggered such a recession?
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