2. Why might deflation be a problem for an economy? 3. Why does the paradox of thrift suggest that g

Feb 3rd, 2012
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2. Why might deflation be a problem for an economy? 3. Why does the paradox of thrift suggest that government needs to intervene in a recession? 7. What dynamic feedback effects can offset the interest rate, international, and money wealth effects? 11. Why is the LAS curve vertical?

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100-150 word limit for EACH ANSWER. NO PLAGIARISM!! 2. Why might deflation be a problem for an economy?3. Why does the paradox of thrift suggest that government needs to intervene in a recession?7. What dynamic feedback effects can offset the interest rate, international, and money wealth effects?11. Why is the LAS curve vertical?BusinessNam EInstitutional Affiliation 1. Why might deflation be a problem for an economy?The main reason why it might be a problem for an economy is because it is a decrease of the general price of goods and services. It occurs when the inflation rate falls below 0%. At this stage, it can be threat to the economy because people are unwilling to spend a lot in purchasing the products in the markets waiting for deflation.2. Why does the paradox of thrift suggest that government needs to intervene in a recession?It suggests that if the government c

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