Economy slip into the recession-explain economic intuition

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Crude oil prices rose from $56 per barrel in January 2007 to $106 in September 2008. During the same period, the US economy slip into the recession and people are very pessimistic about the future. On a well-labeled AD-AS diagram, please show how the events affect the US output and overall price level and explain economic intuition carefully.

Reference no: EM131388075

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