If the countries that export oil (OPEC) to the rest of the world decide to increase the price per barrel of oil, explain what impact the increase in the price level will have on the following: -Maritime and land transportation of products. -Consumer goods and services -The electric energy

Q: Refer to the information provided in Figure below to answer the question that follow. AS 300 600 900…

A: The verticle axis of the graph shows the price level while the horizontal axis shows the aggregate…

Q: Discuss the problems with the Consumer Price Index.

A: Consumer price index measures the change in quantity demanded by the consumers when the prices of…

Q: a. Using 2000 as the base year, what is the growth rate of real GDP from 2000 to 2010? b. Based on…

A: Inflation refers to the increment in the general prices of commodities in the country.

Q: Use an aggregate supply (upsloping range) and aggregate demand diagram to demonstrate the effect of…

A: Note: Since you have asked a question with multiple sub parts, we will solve the first three…

Q: AS2 AS, AS3 e2 ) e, AD Real Domestic Output Refer to the graph. If aggregate supply shifts from AS1…

A: The macroeconomic equilbrium in an economy is determined by the aggregate demand and aggregate…

Q: If the price level were to rise from 160 to 200, in what direction and by how much would the value…

A: If the price level were to rises, it is called inflation. If the inflation increases or occurs, the…

Q: If the price level falls, then the value of a dollar: A. Rises so people will buy more B. Rises so…

A: The fall in the price level means, with the same amount of money a consumer can purchase more goods.

Q: AS Price Level 100 105 103 AD Real GDP 10t 20t 30t Considering the figure above, at what point does…

A: There are two types of aggregate supply prevailing in the market based on the time period under…

Q: If oil prices rose at the same time that the federal government decreases taxes in the short run…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: The price of​ long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per…

A: Consumer Price Index (CPI) refers to a statistical measure of finding variation in levels of prices…

Q: what happen exports when price level increase? Describe in paragraph

A: We can think this problem with two angles, firstly when the price level increases in the domestic…

Q: The prices and quantities sold at the Waleska Clothing Emporium for ties, suits, and shoes for April…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Question: The electricity prices and the natural gas prices have increased drastically, 15 percent…

A: The increase in the prices of the goods like the electricity and the natural gas would result in the…

Q: What effect would an increase in aggregate demand have on price levels and GDP? What effect…

A: The GDP is production of goods and services during  an accounting year.  There might be situation…

Q: Question attahed in image

A: A decrease in the price level of a particular commodity means that the consumers are now able to…

Q: To measure inflation, economists usually refer to the consumer price index. Which of these…

A: CPI measures the change in value of a fixed basket of goods, over time. So, if price of the goods…

Q: If prices change in a way that leaves the overall price level unchanged then no one is made better…

A: Meaning of Cost Plus Pricing: The term cost-plus pricing refers to the situation under which the…

Q: Year Units of Output | Price per Unit 8 $ 2 10 3 15 4 4 18 20 6 The accompanying table gives price…

A: Here, price and output is given for 5 different years and year 2 is taken as base year.

Q: Which of the following statements about Aggregate Demand is true... a) It is negatively related to…

A: Aggregate Demand is the total value of goods and services produced in the economy with given…

Q: In an economy there is a 15.2 % fall in the consumer spending on the same basket of goods and…

A: The cost of basket represents the total expenditure made by households on specfiic amount of goods…

Q: what happen imports when price level increase? Describe in paragraph

A: Imports are the purchase of those goods and services which are produced outside the country. In…

Q: 2010 Price Quantity 100 2016 Price QuantitY 113 55 85 10 se.24 50.32 0.29 0.34 1.04 0.64 0.43 50…

A: a) The simple price index formula is given by = Pcurrent/Pbase *100 Thus, Fruit Price Index…

Q: If firms become more optimistic about the future of the economy and, at the same time, innovation in…

A: When the economy as well as the people in the economy becomes optimistic about the future, then they…

Q: The price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per…

A: The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay…

Q: Why are price levels are lower in poorer countries? Discuss some theories.

A: In poor countries, where labor is bountiful, work serious goods and services (nontradable) can be…

Q: Question 18   You borrow money for a new car at a rate of 5%; inflation is at 4%. From this…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1. The level of prices and the value of money Suppose the price level reflects the number of dollars…

A: Value of money is inversely related to price level. Increase in price level leads to increase in…

Q: The following graph shows the economy's aggregate demand curve. Show the impact of the increase in…

A: Aggregate demand refers to the amount if sales proceeds which an entrepreneur actually expects from…

Q: If the price level in the economy goes up while all other factors affecting the economy remains the…

A: C is consumer spending, I is investment spending and NX is net exports.

Q: In the Graph, what is the equilibrium level of real GDP and equilibrium price? D 120 110 100 'D…

A: Total gross domestic product (real GDP) is the adjusted inflation rate that basically reflects the…

Q: If the government increases its expenditure on goods and services and as a​ result, the money wage…

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A: The sticky wage theory gives an economic explanation for changes in wages and supply of labour. It…

Q: What is true about equilibrium price level? a. There will be some surplus in the economy b. There…

A: Equilibrium occurs at the intersection of demand and supply curves, that is where quantity demanded…

Q: what happen exports when price level decrease ? Describe in paragraph

A: Exports signifies the amount of domestically made commodities purchased by the foreign residents for…

Q: The Central Bank of Indonesia sees the potential of the latest credit card technology to facilitate…

A: Credit card: A credit card is a type of plastic money which is being issued by the banks and other…

Q: Explain the process that leads to the change in the aggregate price level* thank. you

A: We know that within the Classical form of Quantity Theory , the demand for money is given by :…

Q: Price Level OOOO Aggregate Demand price level; GDP; decreases price level; consumption; decreases…

A: Aggregate demand shows relationship between price and GDP

Q: In the long run, when wages rise, the price level and equilibrium output

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Q: A nominal value can increase when either prices or quantities or both increase. Select one: True…

A: A nominal value is an unadjusted value whereas the real value is an adjusted value.

Q: ccording to the East Asia and Pasific Economic update published by the World Bank in April 2015, the…

A: "Since you have asked multiple parts, we will answer only the first part for you. If you have any…