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i)Using an IS-LM model, AD-AS model, and a Phillips curve, explain the impact of an increase in oil prices on the Ghanaian economy. Analyse the
i)Using an IS-LM model, AD-AS model, and a Phillips curve, explain the impact of an increase in oil prices on the Ghanaian economy. Analyse the short run impact on real output, employment, prices, and real interest rates. Be sure to explain how it is possible to have an increase in the rate of unemployment while simultaneously experiencing an increase in inflation. Suppose that this increase in oil prices was permanent. What are the long run effects on the economy?
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