What is meant by supply-side economics

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• What is meant by "supply-side economics"?

• Why must the total value of saving in an economy equal the total value of investment?

• Briefly describe the effect of the business cycle on the inflation rate and the unemployment rate. Why might the unemployment rate continue to rise during the early stages of a recovery?

• Why might a supply shock lead to stagflation?

• Why do economists believe that it is important for the country's central bank to be independent of the rest of the country's central government?

Reference no: EM131173846

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