08 Jun Question 1.If the price of crude oil tempo
Question
1.If the price of crude oil temporally increased due to the war in middle east (crude oil is a very important resource). Using the supply and demand model to illustrate what will happen in the resource market, what is the effect on the resource price and quantity?
Using aggregate demand/ aggregate supply model to illustrate what will l happen to the output and price in both the long and short runs.
2. The labor market is a major component of the resource market. If there is a large increase in immigration. Using the supply and demand model to illustrate what will happen in the resource market, what is the effect on the resource price and quantity? Using aggregate demand/ aggregate supply model to illustrate
what will happen to the output and price in both the long and short runs.
3. Suppose that U.S. tastes for British goods increase, what will happen to the British Pounds market?
Using the supply and demand model to illustrate your answer. Is the
British Pounds appreciated or depreciated
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