Question

A world-wide decrease in oil prices would most likely result in: A. A negative shock to...

A world-wide decrease in oil prices would most likely result in:

A. A negative shock to Aggregate Demand

B. A positive shock to Aggregate Demand

C. A negative shock to Aggregate Supply

D. A positive shock to Aggregate Supply

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A negative shock in aggregate demand will likely result in a permanently lower equilibrium inflation rate,...
A negative shock in aggregate demand will likely result in a permanently lower equilibrium inflation rate, unless the central bank responds by lowering interest rates. Say whether you think the statement is true, false, or uncertain; and support your answer in a few lines.
There is a decrease in oil prices, and everyone believes this decline in oil prices is...
There is a decrease in oil prices, and everyone believes this decline in oil prices is temporary. You attend a meeting at the Bank of Canada and hear that their analyst suggests, "Low oil prices increase the aggregate demand, and we face a real possibility of increased inflation. To prevent undesirable inflation, we must reduce the money supply." Using the AD-AS model, analyze the analyst’s proposal, i.e., explain whether and why his proposal would prevent undesirable inflation (achieve price stability).
23) A decrease in the discount rate will most likely A) not effect the money supply....
23) A decrease in the discount rate will most likely A) not effect the money supply. B) increase the money supply. C) have an unclear affect on the money supply. D) decrease the money supply. 18) Nominal income is equal to A) aggregate money demand multiplied by aggregate money supply. B) the aggregate price level multiplied by real aggregate income. C) the real aggregate price level divided by the nominal interest rate. D) the aggregate money multiplier divided by the...
Unemployment would increase and prices would decrease if A. aggregate demand shifted left B. aggregate demand...
Unemployment would increase and prices would decrease if A. aggregate demand shifted left B. aggregate demand shifted right C. aggregate supply shifted left D. aggregate supply shifted right
How would you expect a large decrease in aggregate demand (the Coronavirus demand shock) to affect...
How would you expect a large decrease in aggregate demand (the Coronavirus demand shock) to affect real GDP in the price level? Explain how and why the spread of the Coronavirus is likely to affect consumer and business investment spending and how it will affect aggregate demand? Be specific. aggregate supply curves are blank for low levels of output, and blank for higher levels of output.
which is most likely to cause a recession? A. a balanced budget B. A decrease in...
which is most likely to cause a recession? A. a balanced budget B. A decrease in total spending C. A decrease in interest rate D. An increase in total spending E. None of the above in macroeconomics equilibrium: A. Total spending is constant B. Total output exceeds total spending C. The unemploymen rate fails D. Savings exceed investment spending E. Aggregate demand and aggregate supply are unequal
explain using aggregate demand and supply modeling how a decrease in world price of oil, due...
explain using aggregate demand and supply modeling how a decrease in world price of oil, due to the pandemic and the Saudi and Russia oil war, was achieved. Also, explain in depth as to what will happen to a country's output, income and employment if that country exports oil
An increase in the money supply curve would most likely result in which of the following...
An increase in the money supply curve would most likely result in which of the following situations? Select one: a. No effect on the real interest rate b. An increase in the real interest rate c. A decrease in the quantity of money available d. A decrease in the real interest rate
An increase in the money supply curve would most likely result in which of the following...
An increase in the money supply curve would most likely result in which of the following situations? Select one: a. A decrease in the real interest rate b. A decrease in the quantity of money available c. An increase in the real interest rate d. No effect on the real interest rate
Suddenly there is an increase in the demand for Frisbees. The most likely result would be...
Suddenly there is an increase in the demand for Frisbees. The most likely result would be A firm will not produce where MR=MC when a. It is making an operating profit b. It is earning negative economic profits c. It is making an operating loss d. It is earning positive economic profit Households are a. Suppliers in the input market b. Demanders in the labor market c. Demanders in the input market d. Suppliers in the product markets The short...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT