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War in the middle east has shut down the Suez Canal. The war is expected to shut down this key shipping route for a few
War in the middle east has shut down the Suez Canal. The war is expected to shut down this key shipping route for a few months at a minimum. This shipping disruption is starting to cause inflation
- in the IS-MP model, this shipping disruption would cause inflation because it would shift the _______ curve __
- in the AD-AS model, this shipping disruption would cause inflation because it would shift the ____ curve ____
- if central bank wants to use monetary policy to push inflation back down to its target, it should ______ money supply in the liquidity preference model (money market) which would cause a shift of the _____ curve _____which will ______ the central banks overnight interest rate
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