Demand-Side Stabilization: Overheating, Hard Landing, and Sap Bubbles

Farrokh K. Langdana
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Farrokh K. Langdana: Rutgers University–Newark and New Brunswick

Chapter Chapter 5 in Macroeconomic Policy, 2022, pp 83-126 from Springer

Abstract: Abstract In the previous chapter we examined the possibility of a shift in the goods market equilibrium from E0 to a higher equilibrium E1, which equated to an equivalent rightward shift in the AD curve. This chapter continues the analysis with a discussion of the specific fiscal and monetary policies by which the aggregate demand (AD) curve can be shifted to enact demand-side stabilization. This will be followed by an in-depth description of overheating, soft landings, and hard landings.

Date: 2022
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DOI: 10.1007/978-3-030-92058-6_5

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