theorem multisector_stagflation (e : NSectorEconomy N) (n : Fin N)
{T2 : ℝ} (hT2 : e.T n ≤ T2) :
-- (a) Effective curvature decreases (output falls)
effectiveCurvatureKeff (e.J n) (e.ρ n) T2 (sectorCriticalFriction e n) ≤
sectorEffectiveCurvature e n ∧
-- (b) Allocation distortion increases (prices rise)
sectorAllocationDistortion e n ≤
allocationDistortion T2 (sectorCriticalFriction e n) := by
simp only [sectorEffectiveCurvature, sectorAllocationDistortion]
exact ⟨bilateral_Keff_decreasing (e.hJ n) (e.hρ n)
(sectorCriticalFriction_pos e n) hT2,
allocationDistortion_monotone (sectorCriticalFriction_pos e n) hT2⟩Multiplier-Cycle Duality in a Multi-Sector Economy