User Account

All Pages

Aggregate demand and aggregate supply

Assignment Help Business Economics
Reference no: EM131876913

Aggregate Demand and Aggregate Supply

Respond to the following: 

During the 1973 Arab-Israeli War, Arab members of the Organization of the Petroleum Exporting Countries (OPEC) imposed an oil embargo against the US. The resulting oil shortage triggered a recession that lasted from 1973 to 1975. Since oil is such an important input in all sectors of the economy, the oil shortage shifted the US aggregate supply (AS) curve inward to the left, relative to aggregate demand (AD), causing GDP to fall or stagnate while the price level soared. We now refer to this phenomenon as "stagflation".

  • Now that oil prices are dropping, use aggregate demand (AD) and aggregate supply (AS) to explain why this is good for consumers. 
  • What impact does declining oil prices have on inflation? 
  • Is there a downside to low oil prices? Who are the winners and losers in the economy?

Reference no: EM131876913

Questions Cloud

What makes a good project manager : Have you ever worked with a project manager that you thought was particularly talented or capable? What skill made them so talented or capable?
Discuss lessons learned and propose action that can be taken : Discuss lessons learned and propose actions that can be taken by your management to avoid similar anti- trust actions in your proposed merger.
How might a company configure strategy making processes : How might a company configure its strategy making processes to reduce the probability that managers will pursue their own self-interest at the expense.
What will be the total interest for december : Nov. 2 Received payment of principal plus interest from Carson for the September 3 note. What will be the Total interest for December
Aggregate demand and aggregate supply : During the 1973 Arab-Israeli War, Arab members of the Organization of the Petroleum Exporting Countries (OPEC) imposed an oil embargo against the US.
Explain how the implementation of the recommendation serves : Explain how the implementation of the recommendation serves as a specific solution to a real health care problem that is facing the organization.
What have you learned from these personality tests : what have you learned from these personality tests about organizational behavior that will help you be a better employee, coworker, and/or manager
Describe a real world example of an oligopoly : In short answer format identify and describe a real world example of an oligopoly. What characteristics of this market fit the definition of an oligopoly
Define the goals of marketing campaign for your segment : The goal of a marketing strategy is to increase sales and stay current with how a market is behaving. Present this strategy in a way that communicates.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd