ECON.TODAY (COMPLETE)-TEXT ONLY
ECON.TODAY (COMPLETE)-TEXT ONLY
18th Edition
ISBN: 9780133882285
Author: Miller
Publisher: PEARSON
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Chapter 17, Problem 13P
To determine

The real business cycle approach results in short-run increase in real GDP mostly to aggregate supply shocks. The rightward shifts in the aggregate supply cause a fall in the equilibrium price level. The real business cycle perspective of the low, but persistent inflation experienced in the United States until 2007 needs to be explained.

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