Russia is a very large country and is endowed with many useful natural resources, among them being petroleum, nickel and the so-called "rare earth" minerals. Petroleum is utilized in the production and or transportation of virtually all products. America has plenty, but the Biden administration has drastically cut back on the domestic production of oil. Nickel is important for making batteries and many other products. Russia has lots and lots, but America has almost none. "Rare earth" minerals are important in the production of semi-conductors and other electronic devices. Again, Russia has lots, America -- not so much. Because the U.S., Japan, Australia, the industrializeded democracies Europe, and other contries are no longer buying natural resources from Russia, the supply of these resources available to the U.S. has diminished. As a result, their prices have gone up -- way up. Aggregate Demand Aggregate Supply Price Level Level of Output Nominal Interest Rates Pacific Ocean no change = 0, up=1, down = 2 no change = 0, up = 1, down = 2 indeterminant = 0, up = 1, down = 2 indeterminant = 0, up = 1, down = 2 Atlantic Ocean Arctic Ocean Atlantic Ocean indeterminant = 0, up = 1, down = 2 Southern Ocean Russia Indian Ocean Copyright ©
Russia is a very large country and is endowed with many useful natural resources, among them being petroleum, nickel and the so-called "rare earth" minerals. Petroleum is utilized in the production and or transportation of virtually all products. America has plenty, but the Biden administration has drastically cut back on the domestic production of oil. Nickel is important for making batteries and many other products. Russia has lots and lots, but America has almost none. "Rare earth" minerals are important in the production of semi-conductors and other electronic devices. Again, Russia has lots, America -- not so much. Because the U.S., Japan, Australia, the industrializeded democracies Europe, and other contries are no longer buying natural resources from Russia, the supply of these resources available to the U.S. has diminished. As a result, their prices have gone up -- way up. Aggregate Demand Aggregate Supply Price Level Level of Output Nominal Interest Rates Pacific Ocean no change = 0, up=1, down = 2 no change = 0, up = 1, down = 2 indeterminant = 0, up = 1, down = 2 indeterminant = 0, up = 1, down = 2 Atlantic Ocean Arctic Ocean Atlantic Ocean indeterminant = 0, up = 1, down = 2 Southern Ocean Russia Indian Ocean Copyright ©
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Economics
Russia is a very large country and is endowed with
many useful natural resources, among them being
petroleum, nickel and the so-called "rare earth"
minerals. Petroleum is utilized in the production and or
transportation of virtually all products. America has
plenty, but the Biden administration has drastically cut
back on the domestic production of oil. Nickel is
important for making batteries and many other products.
Russia has lots and lots, but America has almost none.
"Rare earth" minerals are important in the production of
semi-conductors and other electronic devices. Again,
Russia has lots, America -- not so much. Because the
U.S., Japan, Australia, the industrializeded democracies
Europe, and other contries are no longer buying natural
resources from Russia, the supply of these resources
available to the U.S. has diminished. As a result, their
prices have gone up -- way up.
Aggregate Demand
Aggregate Supply
Price Level
Level of Output
Nominal Interest Rates
Pacific Ocean
no change = 0, up = 1, down=2
no change = 0, up = 1, down = 2
indeterminant=0, up = 1, down = 2
indeterminant=0, up = 1, down=2
Atlantic Ocean
Arctic Ocean
Atlantic Ocean
indeterminant=0, up=1, down = 2
Southern Ocean
Russia
Indian Ocean
Pacific Ocean
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