Essays Tagged: "negative supply"

The Crude Art of Policymaking

gher oil prices transfer the income from oil importing counties to the oil producers. This causes a negative supply shock and a negative demand shock in the economy. This shock causes higher oil price ... ing, America's federal funds rate was cut from 11% to 6% during this time. This resulted in sharply negative real interest rates. This causes the demand curve to increase, with the aim to support the ...

(2 pages) 29 0 5.0 Feb/2005

Subjects: Social Science Essays > Economics > Development Studies