In 1973, there was an oil supply shock created by OPEC (the Organization of the Petroleum Exporting

Question:

In 1973, there was an oil supply shock created by OPEC (the Organization of the Petroleum Exporting Countries). Now the price of oil is dropping. Let's look at what happens when the supply shock is favorable.
Use aggregate demand and aggregate supply to explain why current oil prices are so low. It is certainly good for consumers, but is there a downside as well? When oil prices drop, who benefits and who loses? Why? How?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: