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-Using the Above Graph Assume That the Economy Is in Equilibrium

Question 38

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  -Using the above graph assume that the economy is in equilibrium at an output level of $600 billion and a price level of 110. What would happen to the aggregate output level and the price level in th face of an oil embargo?
-Using the above graph assume that the economy is in equilibrium at an output level of $600 billion and a price level of 110. What would happen to the aggregate output level and the price level in th face of an oil embargo?

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It would decrease th...

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