Ad increase raises gdp much more than a giant ad increase

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Reference no: EM13181455

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?

Reference no: EM13181455

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