Suppose the economy starts with output at potential then a, Business Economics

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Suppose the economy starts with output at potential then a

Suppose the economy starts with output at potential. Then a supply shock occurs: oil prices rise sharply. What could monetary policy makers do to minimize the resulting recessionary gap (Hint: explain using the the AD and AS framework; no need to draw graphs).

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Business Economics: Suppose the economy starts with output at potential then a

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