As a result of this change, the unemployment rate Use the sticky-wage theory of aggregate supply to think about what will happen to output and the price level in the long run (assuming there is no change in policy). On the graph, illustrate the change that will occur in the long run.

Use the FRED database (https://fred.stlouisfed.org/) to find out what happened to theprice of oil (WTISPLC) and the New Zealand unemployment rate(LRUNTTTTNZQ156S) in 2022. What does our model of labour marketdetermination predict will happen to the natural unemployment rate when oil pricesincrease? What is the consequence for inflation given these developments, and why(Be careful to distinguish between the natural and actual unemployment rate)

Brent, the international oil marker, hit US$130 a barrel on 8th March 2022. The oil price is close to 90 per cent above their level at the same point in time last year. Suppose that the rise in oil price is permanent. It creates an inflation shock and, at the same time, reduces potential output. With the aid of AD-AS model, show the difference in the effects of the oil price increase on output and the inflation rate in the long run if the government does not engage in stabilization policy and if the government does engage in stabilization policy to keep the inflation level low. Please elaborate your answer verbally.

explain what happens in the short run if the Federal Reserve raises interest rates in the economy? Assume that the economy is at full employment before the interest rate increase. Be sure to detail what happens to: aggregate demandthe price levelthe level of GDPand unemployment.  (Provide a detailed explanation of the graph provided).