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In 2008, the price of oil rose sharply on world markets. What impact would you expect there to be on the aggregate price level and
In 2008, the price of oil rose sharply on world markets. What impact would you expect there to be on the aggregate price level and on real GDP? Illustrate your answer with aggregate demand and supply curves. What would you expect to be the effect on interest rates if the Fed held the money supply constant? Tell a complete story.
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