If continuous increases in oil prices permanently reduce aggregate supply, AS shifts _____________ and the economy faces ____________________.

Name: If continuous increases in oil prices permanently reduce aggregate supply, AS shifts _____________ and the economy faces ____________________.
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When continuous increases in oil prices permanently reduce aggregate supply, the AS curve shifts up, leading to higher unemployment and inflation, a phenomenon known as stagflation.

If Continuous Increases in Oil Prices Permanently Reduce Aggregate Supply