Suppose that a decrease in the demand for goods and services pushes the economy into a recession. In your own words, explain what happens to the price level and real GDP? Explain how the economy will eventually get back to the potential output?
Suppose that a decrease in the demand for goods and services pushes the economy into a recession. In your own words, explain what happens to the price level and real GDP? Explain how the economy will eventually get back to the potential output?
Chapter10: Bringing In The Supply Side: Unemployment And Inflation?
Section: Chapter Questions
Problem 1DQ
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Suppose that a decrease in the demand for goods and services pushes the economy into a
recession. In your own words, explain what happens to the
how the economy will eventually get back to the potential output?
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