Monday, August 23, 2010

Macroeconomic impacts on oil prices?

Examine the macroeconomic impacts of an increase in the global price of oil. Could you please answer by giving relevant examples. How will this impact on a global business ?Macroeconomic impacts on oil prices?
It will:


1) increase all business costs (thus shifting supply left)


2) cause inflation (increase in price level).





Global businesses will suffer too - b/c transportation and production costs have risen.

No comments:

Post a Comment