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A country with a relatively small + aggregate demand shock (a shift outward in the AD curve) may have a substantial economic boom, but sometimes countries that have massive increase in the AD curve (hyperinflation countries like Germany before WWII) don't seem to have massive eocnomic booms. Why does a small AD increase sometimes raise GDP much more than a giant AD increase?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9471548

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