Macroeconomics
Macroeconomics
5th Edition
ISBN: 9781319098759
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Chapter 1, Problem 14P
To determine

How the drop-in production in US affected Mexican economy

Concept Introduction:

Economic Principle:

“Overall spending sometimes gets out of line with the economy’s productive capacity”- The economy can face inflation or recession at the time when spending of whole economy rises or falls all together.

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