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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:

Net Change

The difference in a financial instrument's closing price from one day to the next.

Cow Feed

Food provided to cows, including grass, grains, and other dietary supplements, to maintain their health and productivity.

Price of Hay

The cost at which hay is sold or bought, often influenced by factors such as quality, availability, and demand.

Club Membership

Club membership describes an individual's subscription or affiliation with a private group that offers access to exclusive resources or activities.

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