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Bullet point essay structure. a) Assume that newly discovered oil reserves affected the world oil prices. Illustrate and analyse the impact of the event on

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Bullet point essay structure.

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a) Assume that newly discovered oil reserves affected the world oil prices. Illustrate and analyse the impact of the event on the AD-AS diagram, the Phillips-curve diagram, and the money market diagram for country A. What would happen to inflation, unemployment and interest rate in the short-run and long-run? (15 marks) b) The objective of the Central Bank is to increase economic growth. To this end, it increases the money supply. Can anything offset the increase in the money supply so that Real GDP does not rise? Analyse and explain your answer. (10 marks)

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