Should they increase or decrease the quantity of money


Assume there is a temporary but significant increase in oil prices in an economy with an upward-sloping Short-Run Aggregate Supply (SRAS) curve. Should they increase or decrease the quantity of money in circulation if policymakers wish to prevent the equilibrium price level from changing in response to the oil price increase? Why?

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Macroeconomics: Should they increase or decrease the quantity of money
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