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Montano1993 [528]
2 years ago
11

An oil cartel effectively increases the price of oil by 100% causing a shock in oil consuming countries A and B. The FED in coun

try A takes immediate action increasing the money supply, while FED in inflationary country B does not take any action. In the long run you would expect that: a. Both countries return to their long-term stable equilibrium (Y and unemployment) but with a higher price level b. Both countries return to their long-term stable equilibrium, but country A will remain with a higher price level than country B c. Both countries return to their long-term stable equilibrium, but country B will remain with a higher price level than country A d. Country B will never return to its long-term equilibrium
Business
1 answer:
Ann [662]2 years ago
3 0

When an oil cartel effectively increases the price of oil by 100% causing a shock in oil consuming countries A and B.

The FED in country A takes immediate action increasing the money supply, while FED in inflationary country B does not take any action

In this case, in long term "Both countries return to their long-term stable equilibrium, but country A will remain with a higher price level than country B".

<h3>What is Federal Reserve System (FED)?</h3>

The nation's central banking system is the Federal Reserve System, usually referred to as the Federal Reserve or just the Fed.

The Fed offers a secure, adaptable, and stable monetary and financial system to the nation.

The Fed's primary responsibilities include-

  • overseeing and regulating banks,
  • implementing national monetary policy,
  • preserving financial stability, and
  • offering banking services.

Therefore, to better understand the effects of financial services laws and practices on customers and communities, the Federal Reserve promotes supervision, community reinvestment, and research.

To know more about  monetary policy, here

brainly.com/question/13926715

#SPJ4

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Eleven uses performance management for administrative purposes. The administrative purposes focus on issues such as
andrew11 [14]

It focus on issues such as determining who will be getting raises in administrative purposes .

<h3>Administrative purposes </h3>

Administrative purposes means any purpose necessary for the operation and proper functioning of the administrative, educational and medical services carried out by an approved developer in a zone.

Administrative purposes include administrative issues, including the working of the corporations, funding from the State government, disbursement of counsillor funds and shortage of staff, got about two to three times more attention than solid waste management, education and health.

Learn more about administrative purposes here:

brainly.com/question/11671451

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6 0
2 years ago
"Reginald owns a grocery and his clerks are on strike. Reginald is trying to operate the store with the help of his manager, but
nirvana33 [79]

Answer:

The right thing for Reginald to do Is to merge law and equity to resolve the situation.

Explanation:

It means Reginald should call the ten striking clerks to the table and hear out their grievances and do something about their grievances if the fault is from him(Reginald) so that they can get back to work, but if they fail to come to a compromise, the law can be apply.

3 0
3 years ago
The following was paid out of the Petty Cash account: $200 for Office Supplies $100 for Delivery Expense $300 is needed to reple
SCORPION-xisa [38]

Answer:

Petty cash refers to a certain amount, which is kept by the company to spend it on small items related to the business.

Explanation:

The Journal entry is given below:

5 0
3 years ago
Under a periodic inventory system:____________.
anyanavicka [17]

Answer:

1. accounting records continuously disclose the amount of inventory.

Explanation:

The periodic inventory system is the accounting method of calculating the value of inventory at the end of a specified period of time. Under this system, updates are made on a periodic basis rather than after every sale or purchase of inventory. It continuously tracks the record of inventory by physically counting the inventory and the cost of inventory is calculated by using the inventory calculation method, such as FIFO, LIFO, and weighted averages.

7 0
3 years ago
We calculated the gains and losses from price controls on natural gas and found that there was a deadweight loss of $5.68 billio
Simora [160]

Answer:

Explanation:

1. If the price of oil were $70.00 per barrel, what would be the free-market price of gas?

The free-market price is defined by the equilibrium point: when the quantity demanded and the quantity supplied are equal.

QS = 15.90 + 0.72PG + 0.05PO

QD = 0.02 – 1.8PG + 0.69PO

15.90 + 0.72PG + 0.05(70.00) = 0.02 – 1.8PG + 0.69(70.00)

19.4 + 0.72 PG= 48.32-1.8PG

PG(0.72+1.8)=48.32-19.4

PG= 28.92/2.52

PG= $11.48

QS=QD= 15.90+0.72(11.48)+0.05(70.00)

QS=QD= 27.66

What would be the deadweight loss if the price of natural gas were regulated to be $4.00? The deadweight loss would be $___ billion. (Round answer to two decimal places)

If PG is $4.00

The quantity supplies will be less than the quantity demanded. The quantity supplied will be the quantity sold in the market.

QS=  15.90+0.72(4)+0.05(70.00)

QS= 22.28

To find the deadweight loss we must evaluate the quantity supplied in the demand curve:

22.28 = 0.02 – 1.8PG + 0.69(70.00)

1.8PG= 48.32-22.28

PG= 26.04/1.8

PG= 14.47

And now we calculate the area shown in the figure attached:

Base: 14.47-4= 10.47

Height: 27.66-22.28= 5.38

Deadweight loss: (10.47*5.38)/2

Deadweight loss: 28.1643

The deadweight loss would be $28.16 billion.

6 0
3 years ago
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