Many of the resources devoted to the fiscal stimulus packages by governments around the world during the

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Many of the resources devoted to the fiscal stimulus packages by governments around the world during the global financial crisis encouraged investment in research and development of new technologies (e.g., more fuelefficient cars, wind and solar power) and infrastructure investment (roads, bridges, and transportation networks). Assuming this policy results in a positive productivity change for the economy, what does aggregate demand and supply analysis predict in terms of inflation and output? Use a graph to demonstrate.

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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