suppose that the price of oil rises unexpectedly. if nothing else occurs in this economy to shift the curves, which curves shifts? in which direction? is the unemployment rate higher or lower? is the...

suppose that the price of oil rises unexpectedly. if nothing else occurs in this economy to shift the curves, which curves shifts? in which direction? is the unemployment rate higher or lower? is the price level higher or lower? suppose the central bank tries to eliminate the impact of this change on the price level,what should it do to interest rates and to the money supply? would this return the economy to long run equilibrium or not? suppose instead that the central bank tries to return the economy to potential GDP. what should it do to interest rates and to the money supply? would this eliminate the inflation, or make it worse?