In an opinion column in the Wall Street Journal in 2016, Harvard economist Martin Feldstein referred to

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In an opinion column in the Wall Street Journal in 2016, Harvard economist Martin Feldstein referred to “a possible negative shock—such as a sharp fall in exports or in construction—that could push the economy into a new recession.” Briefly explain whether he was referring to a shock to aggregate demand or to aggregate supply. Illustrate your answer with an AD–AS graph.

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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