Modern Principles of Economics
4th Edition
ISBN: 9781319098728
Author: Tyler Cowen, Alex Tabarrok
Publisher: Worth Publishers
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Chapter 33, Problem 1FT
To determine
The changes in
Expert Solution & Answer
Explanation of Solution
The figure 1 shows the changes in oil price before and during the time of recession.
In figure 1, the vertical axis measure the real price of oil and horizontal axis measures the year. The shaded vertical line shows the recession happed in the different years. By comparing the price level in before and during the time of recession, the oil price is raised.
Economics Concept Introduction
Concept introduction:
Recession: Recession refers to the situation of lower economic activity. During recession times, the economic activities get contrasted and cause lower employment opportunities; as a result, the income of the people will reduce, thereby reducing the demand for goods and services.
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Chapter 33 Solutions
Modern Principles of Economics
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