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If There Is a Large and Sudden but Temporary Increase

question 13

Essay

If there is a large and sudden but temporary increase in the price of oil, which way does the short-run Phillips curve shift? If the central bank does not respond what happens to inflation and the unemployment rate in the long run?

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Definitions:

Transmission Housing

The outer shell or casing that encloses the components of a transmission, providing protection and structural support.

Pressurized

The state of having been subjected to pressure or compressed, often referring to gases or fluids within a sealed environment.

Range Cylinder

A component in hydraulic or pneumatic systems that determines the range of motion or force output by varying its internal pressure or volume.

Ten-Speed

A transmission with ten gear ratios, offering a wide range of speeds and improved fuel efficiency.

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