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Why might deflation be a problem for an economy

Discussion:

1. Why might deflation be a problem for an economy?

2. Why does the paradox of thrift suggest that government needs to intervene in a recession?

3. What dynamic feedback effects can offset the interest rate, international, and money wealth effects?

4. Why is the LAS curve vertical?

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Microeconomics: Why might deflation be a problem for an economy

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Microeconomics: Why might deflation be a problem for an economy

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