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Economic Quarterly

Winter 1995

Is "High" Capacity Utilization Inflationary?

Mary G. Finn

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High capacity utilization is sometimes inflationary, but so too is low capacity utilization. These relationships fail to support theories that ignore supply shocks and that maintain nonlinearity of the aggregate supply curve.

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Lisa Davis (804) 697-8179

Economic Quarterly

Is "High" Capacity Utilization Inflationary?

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