Guest Posted March 6, 2015 Report Share Posted March 6, 2015 I am really having problems coping with economics. Please do help me if you are reading this post. 1, When interest rate decreases, is there any losers and winners. 2, For oil exporting countries such as Norway, why the fall In oil price is detrimental to the economy? My understanding is it will bring a decrease in Aggregate demand while shifting the Aggregate supply to the right, which means deflation will happen and the total output will be reduced. Is that correct ? and according to the theory of the monetarist, in the long run, only price level will be affected. Therefore, if the country is using demand pull policy to help the situation, the aim of the policy is the accelerate the process of recovery, reduces the fluctuation in the business cycle and prevent serious deflation? Would that be a reasonable analysis ? 3, Would it be wise the point out there is some contradiction between the reality and the economic theory? 4, When the oil price decreases , while the interest rate decreases, the consumers will be the winners ? But for firms, the fall in oil price is a decrease in the cost of production, which means it will favour some business , apart from the oil mining industries ? Can I put this into my macroeconomic commentary? Cause it is more like a microeconomic stuffs when considering individuals and firms. I know it is a lot to take and but I would really really appreciate if any of you can help me any one of the question above. THXX in advanced. Reply Link to post Share on other sites More sharing options...
Guest Posted March 7, 2015 Report Share Posted March 7, 2015 Anyone？？ Reply Link to post Share on other sites More sharing options...
EconDaddy Posted March 7, 2015 Report Share Posted March 7, 2015 Hi, 1, Yes. 2, Detrimental for exports. Ceteris paribus, AD decreases. Downward pressure on price levels correct. Decrease in output not necessarily correct (think of the outward shift of AS). Final question: yes. 3, Could be, depends on context. 4, Yes. Yes. Yes. More or less Reply Link to post Share on other sites More sharing options...
Guest Posted March 7, 2015 Report Share Posted March 7, 2015 Hi, 1, Yes. 2, Detrimental for exports. Ceteris paribus, AD decreases. Downward pressure on price levels correct. Decrease in output not necessarily correct (think of the outward shift of AS). Final question: yes. 3, Could be, depends on context. 4, Yes. Yes. Yes. More or less THXXX again and again. Reply Link to post Share on other sites More sharing options...
EconDaddy Posted March 7, 2015 Report Share Posted March 7, 2015 No problem, I think we'll be in touch for the next year or so anyways... Off-topic: have you checked my blog? I'm really interested if it's helpful at all and I'm happy to get any feedback about it. Like what you and your classmates would be interested in/what would be more helpful. I'd be happy if students could benefit from this site, so any suggestions from your side is much appreciated. Thanks! Reply Link to post Share on other sites More sharing options...
Guest Posted March 7, 2015 Report Share Posted March 7, 2015 No problem, I think we'll be in touch for the next year or so anyways... Off-topic: have you checked my blog? I'm really interested if it's helpful at all and I'm happy to get any feedback about it. Like what you and your classmates would be interested in/what would be more helpful. I'd be happy if students could benefit from this site, so any suggestions from your side is much appreciated. Thanks!I think that is a really really good blog when it comes to searching articles. But i would be quite happy if you can add a comment section or a section reply to people's questions, or maybe give us examples of some common errors that you saw as an examiner. That would be more than helpful. However, I know it is quite demanding and I already really appreciate the idea that you make your own blog and help other students. so Thank YOU Reply Link to post Share on other sites More sharing options...
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