Explain why energy shocks have occurred in the past


Problem

When energy shocks have occurred in the past and the price of imported oil has soared, both the US trade balance and the value of the dollar have increased, even though the US imports about half its oil. Explain why this occurs.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain why energy shocks have occurred in the past
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