Qgiven the significant trend of declining oil price and

Assignment Help Business Economics

Reference no: EM13352409

Q. Given the significant trend of declining oil price and expected independence of oil production by US in coming decade, draw an AS/AD diagram of macroeconomics model (not the oil market itself), explaining the effect on the US macro-economy of expected decline in oil price in 2013 and beyond. In your explanation in words with the help of the diagram, you must clearly explain the connection between changes in oil price and the fluctuations in macroeconomic fundamentals in the US economy. Then show the impact of continuous fall in oil price on the US economy by using the same AD-AS model during the recovery period of the economy from its great recession of 2008. The most recent price of crude oil is fluctuating within the range between $80 and $85/barrel.

Finally, explain why sharp decline in oil prices might not necessarily have positive or negative impact on the US equity markets (stock market) even at the current trend of volatile oil prices.

Reference no: EM13352409

Questions Cloud

Q1 marthas daughter has come to her for advice about what : q1. marthas daughter has come to her for advice about what to do with her future. her mother explains that any

Q1 health official worldwide are concerned by the : q1. health official worldwide are concerned by the resurgence of diseases caused by bacteria that are resistant to

Q1 do you think that frustrates groups like the aspca who : q1. do you think that frustrates groups like the aspca who believe the wto is undermining their effort to make some us

Q1what is the difference between lactococcus lactis and : q1.what is the difference between lactococcus lactis and staphylococcus epidermis? i am doing a lab and ive found out

Qgiven the significant trend of declining oil price and : q.given the significant trend of declining oil price and expected independence of oil production by us in coming decade

Qyou are the owner of a fast food restaurant given a new : q.you are the owner of a fast food restaurant. given a new item that you recently advertised you experience additional

Q1 what is the good range for a heartbeat stroke work in an : q1. what is the good range for a heartbeat stroke work in an anaesthetised sheep? before and after the venous

Quppose the market demand for apples is given by qd : q.suppose the market demand for apples is given by qd 1600-100p and there are two firms operating in it each with a

Q1 a scientist wants to grow human cells to use in an : q1. a scientist wants to grow human cells to use in an experiment. what must the scientist do to grow and maintain

User Account

All Pages