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agents aggregate demand aggregate supply American Economic Review analysis approach argue assumption Barro behavior budget deficits business cycle theory capital classical competition consumption countries demand for money econometric economists effects efficiency wage empirical endogenous equation equilibrium evidence explain firms fiscal policy flexibility fluctuations Friedman function growth rate hypothesis implications important income increase inflation interpretation investment IS-LM Journal of Economic Journal of Political Keynes Keynes’s Keynesian economics Keynesian models Kydland Lucas macroeconomics Mankiw Milton Friedman monetarism monetarist monetary policy money stock money supply natural rate new-classical new-Keynesian new-Keynesian economics nominal demand nominal GNP nominal wage optimal output and employment parameters percent Phillips curve Political Economy predictions price adjustment price changes price level price stickiness problem productivity propositions quantity theory rational expectations real business cycle real wage result Romer rule sector Solow stability Stiglitz supply shocks target theoretical Tobin unemployment variables wage and price
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