Yellen: 'Plausible Ways' Hot Economy Could Heal Growth

The transcript discusses reversing adverse supply side effects by running a high-pressure economy with strong aggregate demand. It highlights how increased business sales can boost productive capacity through capital spending and reduced uncertainty. The tight labor market can draw in potential workers and facilitate efficient job transitions. Additionally, strong demand may lead to productivity gains by encouraging research and development and fostering innovation.

What are some plausible ways to reverse adverse supply side effects in a high pressure economy?

How might increased business sales affect the productive capacity of the economy?

In what ways could a tight labor market encourage job transitions?

What potential productivity gains could arise from strong demand?

How might research and development spending be influenced by economic conditions?