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Discuss the effects of a shock that increases oil prices in the AD-AS model. Be sure...

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Economics

Discuss the effects of a shock that increases oil prices in theAD-AS model. Be sure to explain also the problem ofstagflation.

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Higher oil prices will lead to an improvement in the current account position of oil exporters like OPEC countries A marked rise in oil prices will contribute to a higher inflation level This is because transport costs    See Answer
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