Rise in the price level triggered by higher oil prices

Assignment Help Business Economics

Reference no: EM131169304

Using AS-AD diagrams, illustrate each of the following economic situations by showing the patterns and shifts of either AS or AD that could cause them to happen: a. a rise in the price level triggered by higher oil prices; b. a rise in inflation that happens four years in a row because government spending keeps increasing; c. foreign investors gain confidence and increase the level of investment in the U.S. economy; d. the economies of trading partners grow very slowly, leading to a decrease in exports to those countries e. output declines slightly but the price level falls a great deal.

Reference no: EM131169304

Questions Cloud

Appreciating against other currencies : Assume that the US dollar has been appreciating against other currencies. Please explain how this higher value of US dollar would affect the following firms (in a positive or negative way).

Affect the cost for health insurance companies : When more people buy the more expensive brand name drugs rather than the cheaper generic drugs, how does this affect the cost for health insurance companies? Hint: We are now looking at the health insurance market, not the health care market.

Exports and imports and net exports : What is happening to the US exports and imports and net exports in each of the following situations?

Aggregate demand and short-run aggregate supply : The following events have their initial impact on which of the following:aggregate demand, short-run aggregate supply, long-run aggregate supply, or bothshort-run and long-run aggregate supply? Do the curves shift to the right or left? Explain AND su..

Rise in the price level triggered by higher oil prices : Using AS-AD diagrams, illustrate each of the following economic situations by showing the patterns and shifts of either AS or AD that could cause them to happen: a rise in the price level triggered by higher oil prices;

Three social welfare functions for a society of five persons : Suppose you have three people who are suggesting three social welfare functions for a society of five persons. Person 1 suggests the sum of the utility of each individual (U1+U2+U3+U4+U5). Person 2 suggests using the minimum utility of each individua..

Attempts to prevent future terrorist attacks : Summarize the events of September 11 and describe the way that this terrorist attack affected the nation. Describe the immediate reaction of the nation as well as the federal government’s attempts to prevent future terrorist attacks.

Wealthy local politician promises : A clever, rich, and wealthy local politician promises to give you $1,000 on the first day of four months before elections….From here on he will give you 9/10 of the amount he gave you the day before… What is the total amount you will receive? When wi..

What is her net demand of apples and oranges respectively : Alice, living in Columbus, consumes apples and oranges and nothing else. Let us denote Apples by A and Oranges by O. Let PA denote the price of apples and PO denote the price of Oranges. Alice’s is born with 60 Apples and 30 Oranges. PA = 5 and PO = ..

User Account

All Pages