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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?


Definitions:

≠ Symbol

Represents "not equal to" in mathematical expressions.

Alternative Hypothesis

The hypothesis that states there is a statistically significant relationship between variables, contrasting the null hypothesis.

Directional

Pertains to specifying the direction of an effect or relationship in hypotheses or experimental research.

Non-directional

Hypotheses that predict a relationship between variables without specifying the direction of the relationship.

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