What impact would you expect each of the following events to have on business cycles? Label each

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What impact would you expect each of the following events to have on business cycles? Label each as a demand-side or supply-side shock.
a. Defense production increases due to the imminent threat of war.
b. Net exports decline due to a deep recession in Europe.
c. A sharp increase in technology innovation leads to significant productivity growth.

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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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