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Business, 19.03.2020 01:01 cheerthi16

A negative oil price shock: It is common to blame some of the poor macroeconomic per- formance of the 1970s on the rise in oil prices. In the middle of the 1980s, however, oil prices declined sharply. Using the AS/AD framework, explain the macroeconomic consequences of a one-time negative shock to the in ation rate, as might occur because of a sharp decline in oil prices.

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