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stich3 [128]
3 years ago
5

A negative oil price shock: It is common to blame some of the poor macroeconomic per- formance of the 1970s on the rise in oil p

rices. In the middle of the 1980s, however, oil prices declined sharply. Using the AS/AD framework, explain the macroeconomic consequences of a one-time negative shock to the in ation rate, as might occur because of a sharp decline in oil prices.
Business
1 answer:
Yanka [14]3 years ago
7 0

Answer:

A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.

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Pump prices slide as crude oil falls to​ six-year low The average price for regular gasoline at U.S. pumps fell almost 4 cents i
max2010maxim [7]

Answer:

lower the cost of producing gasoline and increase the supply of gasoline 

Explanation:

Crude oil is an input needed in the production of gasoline. If the price of crude oil falls, it would become cheaper to make gasoline and therefore the supply of gasoline would increase.

5 0
3 years ago
Find the effective rate of interest to the nearest hundredth percent if $60.94 is earned in one year on a deposit of
Nata [24]

Answer:

6.25%

Explanation:

The formula for calculating interest rate is as follows

I= P x R x T

Where

I= interest,  P= principal amount, T is time

in this case: I= $60.94, P=$975, T=1 year

Therefore:

$60.94 = $975 x( r/100) x 1

$60.94 =975(r/100) multiply both side by 100 to get rid of the fraction.

6094=975r

r = 6094/ 975

r = 6.2502

interest rate = 6.25%

8 0
3 years ago
Suppose that an investor is considering three alternative strategies: conservative, neutral, or aggressive. If economic conditio
Elan Coil [88]

Answer:

The answer is: Following the expected value criterion the investor should choose indistinctively between the conservative or neutral alternatives.

Explanation:

The formula we use to calculate the expected return value of the different alternatives is:

            ERV = ∑ (expected return x probability of occurrence)

The conservative alternative has an expected return value of of 4.5%

ERV Conservative = (6% x 25%) + (4% x 75%) = 4.5%

The neutral alternative also has an expected return value of of 4.5%

ERV Neutral = (12% x 25%) + (4% x 75%) = 4.5%

The aggressive alternative has an expected return value of of -1%

ERV Aggressive = (20% x 25%) + (-8% x 75%) = -1%

3 0
3 years ago
Annual inspections and planned maintenance for automotive lifts have been required in American National Safety Standards since 1
Sunny_sXe [5.5K]
If this helps make me the brainiest please!!

; False
4 0
2 years ago
Read 2 more answers
Suppose you use your entrepreneurial spirit and economics training to start your own business. In your first year of work, you a
3241004551 [841]

The  total amount of social insurance taxes you owe the federal government is $3,596.

The social insurance taxes will be tax rate (6.2%) of gross income amount of  $58,000 which is calculated using this formula

Social insurance taxes=Social security tax rate× Gross income

Where:

Social security  tax rate=6.2%

Gross income=$58,000

Let plug in the formula

Social insurance tax=6.2%×$58,000

Social insurance tax=$3,596

Inconclusion the  total amount of social insurance taxes you owe the federal government is $3,596.

Learn more here:brainly.com/question/10714904

3 0
2 years ago
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