2007年5月16日星期三

Energy costs push up US inflation

Energy costs push up US inflation


This article talks about the raising energy costs is increasing the US' inflation rate. When the costs of production in an economy goes up, the aggregate supply curve shifts in, since resource costs is a determinant of supply. When the aggregate supply curve shift in, with the aggregate demand curve staying the same, GDP would decrease and price level would increase. Since energy is essential in the production of almost all goods and services, it has a significant impact on the aggregate supply, therefore the inflation rate.

没有评论: