From May 2014 to March 2015, the price of oil dropped sharply on world markets. What impact

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From May 2014 to March 2015, the price of oil dropped sharply on world markets. What impact would you expect there to be on the aggregate price level and on real GDP? Illustrate your answer with aggregate demand and aggregate supply curves. What would you expect to be the effect on interest rates if the Fed held the money supply constant? Tell a complete story. 

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Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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