There has been extensive discussion of the wealth effect, Business Economics

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There has been extensive discussion of the wealth effect

There has been extensive discussion of the "wealth effect." The argument goes that inflated stock values were partially responsible for the strong U.S. economy of the 1990's. Explain this linkage in words and then illustrate with an Aggregate Demand/Aggregate Supply diagram.

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Business Economics: There has been extensive discussion of the wealth effect

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Business Economics: There has been extensive discussion of the wealth effect

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