Exam 22: Aggregate Demand and Supply Analysis

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The price of a barrel of oil doubled between 2007 and the middle of 2008.To make matters worse,a financial crisis hit the U.S.economy starting in August of 2007.Which of the following is an appropriate description of the mechanism that would have ensued?

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Everything else held constant,a change in workers' expectations about inflation will cause ________ to change.

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