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If Inflation Is Bad, Why Isn't Deflation Good? Use the IS-LM

question 78

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If inflation is bad, why isn't deflation good? Use the IS-LM model to explain how deflation could result in a contraction in output.


Definitions:

Reformist

An advocate for gradual change within existing institutions and structures to improve or reform society, as opposed to advocating for radical or revolutionary changes.

Neoevolutionary Theory

Lenski’s analysis of the role that technology plays in people’s adjustment to the physical world.

Technology Haves

Individuals or communities that have ready access to modern digital technologies and the internet.

Unilinear Evolutionary Theories

Theories suggesting that societies progress through a series of predictable stages towards civilization.

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