Question
(carlin & Soskice) Supply-side shock Oil prices fell dramatically in 1986. Use the WSPS and ERU diagrams to explain the effect of this supply-side shock
(carlin & Soskice)
Supply-side shock
Oil prices fell dramatically in 1986. Use the WSPS and ERU diagrams to explain the effect of this supply-side shock on a small open economy. At the initial real exchange rate, what has happened to real wages and the level of employment?
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International Trade
Authors: John McLaren
1st edition
0470408790, 978-0470408797
