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increase or decrease or unchanged Analyze the effects of a temporary increase in the price of oil (a temporary adverse supply shock). Because the supply

increase or decrease or unchanged

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Analyze the effects of a temporary increase in the price of oil (a temporary adverse supply shock). Because the supply shock is temporary, you should assume that the expected future MPK and households' expected future incomes are 20.0- unchanged. Assume throughout that output and employment remain at full-employment levels (which may change). 18.0- So The effect on: current output employment and the real wage 16.0- Real interest rate, r 14.0- A 2.0- 0.0+ Desired national saving & investmentGiven the following: Output (Y) : 5,000 Government Spending (G): 250 Desired Consumption (C"): 4,750 Real interest rate: 3% If the level of desired investment is equal to 200, the real interest rate is likely to

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