An economy, initially in a stable equilibrium, experiences a sudden and significant increase in the price of a key imported resource. Match each economic event with its immediate consequence in this scenario, before any policy response or labor market adjustment.
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An economy is initially in a stable state. It then experiences a sudden, large increase in the price of a critical imported resource. Arrange the following statements to describe the logical sequence of events that leads to a difficult choice for economic policymakers.
Following a sudden and significant increase in the price of a key imported resource, the economy's immediate and automatic response is a simultaneous rise in inflation and a fall in employment, which presents policymakers with a difficult choice.
An economy, initially in a stable equilibrium, experiences a sudden and significant increase in the price of a key imported resource. Match each economic event with its immediate consequence in this scenario, before any policy response or labor market adjustment.
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