One of the central questions in recent macroeconomic history is to what extent
monetary policy, as opposed to oil price shocks, contributed to the stagflation1 of
the1970s. Understanding what went wrong in the 1970s is the key to learning from
the past. One . . . view is that the oil price shocks of the 1970s arose exogenously with
respect to global macroeconomic conditions, but were propagated by the reaction of
monetary policy-makers, causing stagflation in the process.

Using the aggregate demand-aggregate supply model, explain how “the reaction of
monetary policy-makers” to the oil price rises of the 1970s may have contributed to
the “Great Inflation”.
问题是： coherent description of the role of monetary policy in generating stagflation
Stagflation refers to the simultaneous occurrence of an increase in the unemployment rate and an
increase in inflation. The term was widely used in the 1970s to describe the apparent coincidence of
high inflation and a contractionary gap.

policy-makers 使用expantionary monetary policy 导致inflation 上升。 可是和unemployment的关系不太懂。。 求帮助。。