Question
Assume the price of oil (a universal input) decreases. Starting from a long-run equilibrium, use a graph to show what will happen to real GDP
Assume the price of oil (a universal input) decreases. Starting from a long-run equilibrium, use a graph to show what will happen to real GDP and employment in the economy. Also, explain how monetary policy can be used to take this economy back to full employment.
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
9th Edition
978-0132146654, 0132146657, 9780273754091, 978-0273754206
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