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An oil shock can cause stagflation, a period of higher inflation and higher unemployment. When this happens, the economy moves to a point to the
An oil shock can cause stagflation, a period of higher inflation and higher unemployment. When this happens, the economy moves to a point to the northeast of where it currently is. After the economy has moved to the northeast, the Federal Reserve can reduce that inflation without having to worry about causing more unemployment
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Portfolio Management In Practice Volume 1
Authors: CFA Institute
1 Edition
1119743699, 978-1119743699
