Consider the three types of economic shocks: financial shocks, spending shocks, and supply shocks. Discuss how each
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Consider the three types of economic shocks: financial shocks, spending shocks, and supply shocks. Discuss how each one affects the real interest rate, output gap, and the inflation rate.
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Economic Shocks and their Effects 1 Financial Shocks Real Interest Rate Financial shocks can cause uncertainty and risk aversion in the market This ca...View the full answer
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Related Book For 
Principles Of Economics
ISBN: 9781319330156,9781319419769
2nd Edition
Authors: Betsey Stevenson, Justin Wolfers
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