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T. [1|] points] Consider the recent rise in the price of oil. Suppose that the price increase is temporarily. {a} (I point} (111 this cause
T. [1|] points] Consider the recent rise in the price of oil. Suppose that the price increase is temporarily. {a} (I point} \"(111 this cause current total factor productivity, z, to increase or de- crease? (b) (9 points} Using the real intertemporal model we developed in class, show graph- ic ally how the oil price change would affect output. employment, real wages and the real interest rate. What happens to consumption and investment
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