Question
Use the basic AD-AS model to illustrate and describe the effect of unexpected increase in theoil prices on macroeconomic equilibrium output, price level and (un)employment
Use the basic AD-AS model to illustrate and describe the effect of unexpected increase in theoil prices on macroeconomic equilibrium output, price level and (un)employment in short-run. Additionally, also explain graphically, how the economy adjusts back to long-run equilibrium.(10 marks)
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Consumer Behaviour
Authors: Evans, Martin Evans
2nd Edition
0470994657, 9780470994658
