How high oil prices could reduce real gdp

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1. In the boom years of the late 1990s, it was often said that rapidly increasing stock prices were responsible for much of the rapid growth of real GDP. Explain how this could be true by using aggregate demand and aggregate supply analysis.

2. In 2003, there was much concern that rising oil prices would contribute to a global recession. Use aggregate demand and supply analysis to explain how high oil prices could reduce real GDP.

Reference no: EM131347328

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