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Buy custom Got Those OPEC Blues Again And Rational Exuberance

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Topic: Business
Number of pages / Number of words: 3 / 765
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See the following graph:

Notice how the shift of the AS curve from AS1 to AS2 results in a price level adjustment from P1 to P2.

The economy as a whole as suffered from this increase in oil prices, however, there is little reflection in the stock market. As unemployment stays low, we are in a "help wanted" economy?firms are looking for "warm bodies" to fill needed positions...


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As unemployment stays low, we are in a "help wanted" economy?firms are looking for "warm bodies" to fill needed positions. We also have seen a tremendous rise in GDP and in personal spending. The combination of low unemployment and higher than normal GDP has Fed Chairman Alan Greenspan worrying about how to cool off the economy a bit to control inflation...


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