What will happen to the price level and output? using the, Ask an Expert

Economics

You are told that the economy is significantly below its potential output and that the following will happen next year: World income will fall signigicantly and the price of oil will rise significantly. ( the united states is an oil improter.)

a) what will happen to the price level and output? Using the AS/AD model, demonstrate your predictions graphically.

b) what policy might you suggest to the government?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9446529

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