A large increase in oil prices, such as the ones occurring in 1973 and 1979, will...

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Question

A large increase in oil prices, such as the ones occurring in 1973 and 1979, will...

A large increase in oil prices, such as the ones occurring in 1973 and 1979, will cause

expansion and deflation

recession and disinflation

inflation and expansion

inflation and recession

business economics

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Answer 1

Answer #1

Answer: Inflation and recession

Oil price and inflation have a positive and direct relationship. This means increase in oil price leads to increase in inflation and vice versa. Inflation subsequently results in recession.

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Answer 2

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A large increase in oil prices, such as the ones occurring in 1973 and 1979, will...

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