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The Indian economy, which was facing demand deficiency and slowdown prior to the Covid-19 outbreak, plunged further with the lockdown The present exercise represents the current problem as a typical demand constrained Keynesian equilibrium, afflicted further by demand and supply failures generated by transaction costs The resulting scenario resembles a “supply constrained” Keynesian equilibrium The article looks at the possible impact on prices and discusses the implications of select policy interventions for such an economy © 2020 Economic and Political Weekly All rights reserved
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Economic_and_Political_Weekly
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Paradox of a supply constrained keynesian equilibrium the COVID-19 case
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