6. The price of oil fell sharply in 1986 and again in 1998. a. Show the impact...

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6. The price of oil fell sharply in 1986 and again in 1998.

a. Show the impact of such a change in both the aggregate-demand/aggregate-supply diagram and in the Phillips-curve diagram. What happens to inflation and unemployment in the short run?

b. Do the effects of this event mean there is no shortrun tradeoff between inflation and unemployment?

Why or why not?

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Principles Of Macroeconomics

ISBN: 9780324171891

3rd Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 07:01 AM

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6. The price of oil fell sharply in 1986 and again in 1998. a. Show the impact...

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Principles Of Macroeconomics

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