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QUESTION 10 One of the commentators cited in the article states, "We won't get as much of an inflationary bump if the economy contracts, but we also probably won't get much cooling either." In an ADAS framework, this comment suggests that in addition to a supply side shock, we might also see AD shift left. On top of the original supply shock, this would result in an additional decline in output as well as a decline in the price level.

Name: question 10 one of the commentators cited in the article states we wont get as much of an inflationary bump if the economy contracts but we also probably wont get much cooling either in an a 23817
Uploaded: 2022-09-19T19:43:24-08:00
Duration: 2 min 26 s
Channel: Andrew Davis
Description: question 10 one of the commentators cited in the article states we wont get as much of an inflationary bump if the economy contracts but we also probably wont get much cooling either in an a 23817

          QUESTION 10
One of the commentators cited in the article states, "We won't get as much of an inflationary bump if the economy contracts, but we also probably won't get much cooling either."
In an ADAS framework, this comment suggests that in addition to a supply side shock, we might also see AD shift left.
On top of the original supply shock, this would result in an additional decline in output as well as a decline in the price level.

question 10 one of the commentators cited in the article states we wont get as much of an inflationary bump if the economy contracts but we also probably wont get much cooling either in an a 23817

Added by Gregory M.

Principles of Economics

Gregory Mankiw 8th Edition

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09/19/2022

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QUESTION 10 One of the commentators cited in the article states, "We won't get as much of an inflationary bump if the economy contracts, but we also probably won't get much cooling either." In an ADAS framework, this comment suggests that in addition to a supply side shock, we might also see AD shift left. On top of the original supply shock, this would result in an additional decline in output as well as a decline in the price level.