Suppose there is a sudden increase in oil prices. What will be the effect on output and

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Suppose there is a sudden increase in oil prices. What will be the effect on output and inflation in the short run? What is the "dilemma" faced by the Fed as a result of the adverse inflation shock?
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Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

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