Increase defense production

Reference no: EM13175044

What impact would you expect each of the following events to have on business cycles? Label each as a demand-side or supply-side shock.

· Defense production increases due to the imminent threat of war

· Net exports decline due to a deep recession in Europe

· A sharp increase in technology innovation leads to significant productivity growth

What economic policy changes might you expect in response to each of these events?

Reference no: EM13175044

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