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    1995 was a year that will forever be remembered as an economic turmoil. The US government was in the middle of a massive economic crisis and needed an economic recovery strategy to bring the economy back to life. The government sought the advice of a top economist William E Fruhan who, in a private meeting, proposed an innovative approach to revitalize the economy. Fruhan, a renowned professor of economics, was the Chief Economist of the World Bank from 1977 to 1985. He also had earlier

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    – The case starts from a small factory, Fruhan Industries, with six workers. Everyone was excited for the new production machinery for which a project was awarded for $ 1.4 million by the factory’s management. – The machinery, called “Knockout System”, produced the most successful product, which won the factory’s customers and their high profits for one year. The system could not be tested and sold, as no expert could figure out why it did the work. – In the following months, three more companies bought