Essay
Suppose that war in the Middle East disrupts oil production, reducing the supply of oil by 20%. The central planner of a government decides to economize on oil.
a. What should a central planner do to economize on oil?
b. What information does a central planner have to collect in order to economize on oil?
c. What may cause a central planner to fail to economize on oil?
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a. The central planner should shift oil ...View Answer
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