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In June 2013, Moderate Cleric Hassan Rowhani Was Elected President

Question 104

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In June 2013, moderate cleric Hassan Rowhani was elected president of Iran, one of the top five leading oil countries. Using the AS/AD framework, identify the shocks and determine the overall impact of the election on inflation and the output gap. Discuss the movement back to the steady state.

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First we need to identify the shocks, of...

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