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Answer to Question #153141 in Macroeconomics for juliana

Question #153141
The text notes that changes in oil prices can affect the inflation unemployment outcome. Explain what effect changes in oil prices may
have on these two variables.
1
Expert's answer
2021-01-01T13:57:03-0500

Increase in oil prices will cause aggregate supply to decrease, which will result in increase in inflation and unemployment rate and vice versa.


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