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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:

Ileum

The last section of the small intestine.

Chyme

The semi-fluid mass of partly digested food that is passed from the stomach to the small intestine for further digestion.

Small Intestine

The part of the digestive tract that absorbs nutrients and minerals from food, extending from the stomach to the large intestine.

Abdominal Wall

The layer of muscles and tissue that forms the boundary of the abdomen, providing structural support and protection for abdominal organs.

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