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Explain the process by which the economy

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Using an AD, SRAS, and LRAS curve, explain the effect of the following events on the aggregate-output, unemployment and price level both in the short-run and in the long-run. Explain the process by which the economy moves from one long-run equilibrium point to another.

(a) There is an increase in oil-prices (and no intervention from the government or the Fed).

(b) The Fed increases money supply (after the initial increase in oil-prices).

Reference no: EM132342650

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