Business, 03.04.2020 15:37 Ecneixneixnwism8984

It is common to blame some of the poor macroeconomic performance 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 inflation rate, as might occur because of a sharp decline in oil prices.

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It is common to blame some of the poor macroeconomic performance of the 1970s on the rise in oil pri...