Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that...
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Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that is accompanied by an increase in inflation. What types of shocks could have possibly triggered such a recession? Consider the Keynesian models of Business Cycles. Suppose you see a recession (drop in output) that is accompanied by an increase in inflation. What types of shocks could have possibly triggered such a recession?
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In the context of Keynesian models of business cycles a recession accompanied by an increase in inflation is often referred to as stagflation Stagflat... View the full answer
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