It is common to blame some of the poor macroeconomic performance of the 1970s on the rise

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It is common to blame some of the poor macroeconomic performance of the 1970s on the rise in oil prices. In the middle of the 1980s, however, oil prices declined sharply. Using the AS/AD framework, explain the macroeconomic consequences of a one-time negative shock to the inflation rate, as might occur because of a sharp decline in oil prices.
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Macroeconomics

ISBN: 978-0393923902

3rd edition

Authors: Charles I. Jones

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