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The United States is planning to push Europe towards
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Updated on: 07/31/2018 01:06 PM Due on: 07/31/2018

"The United States is planning to push Europe towards new and more aggressive efforts to boost aggregate demand given a renewed risk of deflation in the Eurozone" - Reuters, Sep 12, 2014
a) explain the process by which deflation occurs
b) How might Europe boost its aggregate demand? Might the boost to aggregate demand create demand-pull inflation?

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Solution: The United States is planning to push Europe towards
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