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19![Chapter 2 “overheats” the economy hit by the shock: A demand surge raises output above the natural rate. If the shock is persistent, excess demand still increases domestic prices and wages, but over time rather than Chapter 2 “overheats” the economy hit by the shock: A demand surge raises output above the natural rate. If the shock is persistent, excess demand still increases domestic prices and wages, but over time rather than](https://www.pdfsearch.io/img/41e8f0785ae1a69d8c23d17e01f1f680.jpg) | Add to Reading ListSource URL: www.cesifo-group.deLanguage: English - Date: 2007-02-27 07:39:32
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