fall in oil prices

Question 1

KAA 1

Answer 1

K - increase in Real GDP
An - cost of production falls for business resulting in more efficient production
Ap - 10% fall in oil prices boosts growth by 0.1-0.5%

Question 2

Eval 1

Answer 2

negative economic effects on oil exporting countries

Question 3

KAA 2

Answer 3

K - consumption
An - prices of goods are lower resulting in increased disposable income and therefore consumption
Ap-

Question 4

Eval 2

Answer 4

maybe negative impact on consumer confidence however