Effect of a Permanent Increase in Oil Price on Inflation and Output

Effect of a Permanent Increase in Oil Price on Inflation and Output Introduction This paper presents a detailed discussion on the effects of increase in the prices of oil both in the short run and long run period of time. The risk to growth following a progressive increase in the price of oil will be conclusively discussed both in the short run and long run period. As a response measure to the increase in the price of oil, monetary policy formulated by the Federal Reserve Bank is worth investigating and making inferences.Advertising We will write a custom essay sample on Effect of a Permanent Increase in Oil Price on Inflation and Output specifically for you for only $16.05 $11/page Learn More The threat to growth following rising price of oil In the early 70s, decrease in the output and rising inflation rates lead to sharp rise in the price of oil. Even In the year 2007, much more rise in the price of oil was associated with fluctuation in the outputs and inflation rates[1]. During the same year, the alterations in the pric e of oil were activated by a change in the supply of the same commodity in the market place. War between the Arab and Israel prompted the formulation of an oil embargo consequently reducing the supply of oil in the market place in 1973. Another factor sourced from the supply side was the consequences of the Iranian revolution in the year 1979[2]. On the other hand emerging economies of china and Japan are the recent cause of the rise in the price of oil. Rapid economic growth and development taking place in these nations creates demand for oil to be used in various sectors of the economy. In recognition of the fact that developing nations are considering trading with up coming economies, expenditures on the products from the United States reduce to a greater extent. Use of AD-AS model This is a model relating the price with the level of production in an economy with reference to employment rates, gross domestic produce policies to stabilize inflation rates, an ultimately macroeconom ic observable fact. The AS-AD model takes into custody the interface between the Aggregate Demand (buyer) and the Aggregate Supply who in this case are the sellers both analyzed in the long and short run period of time[3]. In a macroeconomic context, aggregate demand is specified by a sum total of C+I+ G+ (X-M) in an open economy. Effect of a rise in oil price on inflation and output The graph below shows the effect of a rise in oil price on inflation and output. An inward shift in SRAS following a rise in the price of crude oil imparts on the price level causing a contraction of the AD signified by a movement from Y1 to Y2. Y f c represents full employment of factors of production in the long run. It is now evident that continuous increase in the price of oil reduces output level and raise inflation from P1 to P2. Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Effect of the res ponse of Reserve Bank to the oil price increase The reserve bank can manipulate the interest rates to stimulate growth by creating demand in the economy. Low interest rates attract people to borrow from financial institution consequently raising their purchasing power. Recessions are related with the surging prices of oil and the increase in the rates of funds from the Federal Reserve Bank. It is important to focus on some economic effect of the prices of oil and the federal funds rate. An empirical approach tries to analyze the decline in output from an increase in the price of oil. In an investigation by economic researchers, the findings were that an increase in the prices of oil and a subsequent increase in the funds rate by the Federal Reserve Bank would have a cumulative effect of lowering the gross domestic product. In the year 2004, there was a 30% increase in the price of oil from $33 to $ 45 per barrel. The immediate reaction was maintaining the funds rates at a constant v alue which ultimately reduced the growth rate by only 1.2%. If the funds rates had been increased (in the form of tightening the lending rates), then prediction shows that development would have declined by 2.1%. The investigation shows a clear difference in the effect of an increase in the funds rates and when the rate is maintained at a constant value. Federal Reserve Bank is usually responsible for the changes in the interest rates which affect the supply of money in the market. A higher interest rate acts as a disincentive to borrowing money from the bank. The succeeding consequence is little money chasing the same product. On the other hand, a decrease in the interest rates motivates people to borrow more funds from the bank therefore increasing the supply of money in the market[4]. This means that more money chasing the same product. Because of the competition for the same product, it is possible that growth in national income will be registered but at a higher cost of inflati on as indicated in the graphical diagram above. The use of monetary instrument to influence growth in an economy by a decrease or increase in the interest rates is strictly under the control of Federal Reserve Bank. Conclusion This essay is explicit on the effect of high prices of oil on output and inflation rates. Exogenous variables are responsible for the shift in the AD or AS curve in the short run. The long run graphical illustration of a supply curve is a straight vertical curve. This shows that in the long run, the supply curve is not affected by exogenous variable in the industry. To regulate the supply of money in the market, monetary policy is employed by the Federal Reserve Bank. For a progressive increase in the price of oil, the model clearly substantiates the value attached to maintaining the interest rates at a constant rate.Advertising We will write a custom essay sample on Effect of a Permanent Increase in Oil Price on Inflation and Output specifically for y ou for only $16.05 $11/page Learn More Reference List Bernanke, S, M Gertler M Watson, Oil Shocks and Aggregate Macroeconomic Behavior: The Role of Monetary Policy: A Reply, Journal of Money, Credit, and Banking, vol. 36, no. 2, 2004, 287-91. Olekalns, N, et al, Principles of Macroeconomics, 8th edition, McGraw-Hill, North Ryde, N.S.W, 2008. Footnotes Olekalns, N. et al, Principles of Macroeconomics, 8th edition, McGraw-Hill, North Ryde, N.S.W, 2008. Olekalns, N. et al, Principles of Macroeconomics, 8th edition, McGraw-Hill, North Ryde, N.S.W, 2008. Bernanke, S, M Gertler M Watson, Oil Shocks and Aggregate Macroeconomic Beha Policy: A Reply, Journal of Money, Credit, and Banking, vol. 36, no. 2, 2004, 287-91. Bernanke, S, M Gertler M Watson, Oil Shocks and Aggregate Macroeconomic Behavior: The Role of Monetary Policy: A Reply, Journal of Money, Credit, and Banking, vol. 36, no. 2, 2004, 287-91.

Luminol Chemiluminescence Test for Blood

Luminol Chemiluminescence Test for Blood The luminol chemiluminescence reaction is responsible for the glow of lightsticks. The reaction is used by criminalists to detect traces of blood at crime scenes. In this test, luminol powder (C8H7O3N3) is mixed with hydrogen peroxide (H2O2) and a hydroxide (e.g., KOH) in a spray bottle. The luminol solution is sprayed where blood might be found. The iron from the hemoglobin in the blood serves as a catalyst for the chemiluminescence reaction that causes luminol to glow, so a blue glow is produced when the solution is sprayed where there is blood. Only a tiny amount of iron is required to catalyze the reaction. The blue glow lasts for about 30 seconds before it fades, which is enough time to take photographs of the areas so they can be investigated more thoroughly. Heres how you can detect blood yourself or demonstrate how to do it: Luminol Materials luminol stock solution (2 g luminol 15 g potassium hydroxide 250 mL water)3% hydrogen peroxide in water (common over-the-counter concentration)potassium ferricyanide or a sterile blood lancet and sterile alcohol pad Performing the Test or Demonstration In a clear test tube or cup, mix 10 ml of the luminol solution and 10 ml of the peroxide solution.You can activate the glow either by adding ~0.1 g of potassium ferricyanide to the solution or with a drop of blood. The blood must be on the alcohol pad. The forensic test is for dried or latent blood, so the reaction between the alcohol and fresh blood is necessary. Notes About the Luminol Test In addition to iron and iron compounds, other substances can catalyze the luminol reaction. Copper and its compounds, horseradish, and bleach also cause the solution to glow. So, you could substitute any of these materials for the drop of blood or potassium ferricyanide in the demonstration. Similarly, the presence of these chemicals at a crime scene affects testing for blood. If a crime scene was washed in bleach, for example, the whole area would glow when sprayed with luminol, making it necessary to use a different test to find traces of blood.If you are doing the reaction as a chemiluminescence demonstration, you can kick the display up a notch by dissolving the potassium ferricyanide in the peroxide solution and using a fractionating column or glass spiral to react the solutions rather than a test tube. You could pour a small amount of fluorescein in the bottom of a flask, pour the potassium ferricyanide solution through the spiral into the flask, and (in a darkened room) finish by adding the luminol solution. The spiral will glow blue as it passes through the column, but the glow will change to bright green once the luminol touches the fluorescein in the flask. Dont drink the luminol solution. Dont get it on your skin or in your eyes. If you prepare a spray bottle of luminol solution to check for traces of blood, keep in mind the solution might be damaging to some surfaces. Thats not a big factor at a crime scene, but its something to keep in mind at home or in class. Dont spray upholstery or clothing or people.The quantities of chemicals yield a super-bright demonstration, but you  can use much less luminol (~50 mg) and still achieve enough luminescence for a demonstration or for crime work. How the Luminol Test Works The iron in the hemoglobin found in blood catalyzes an oxidation reaction in which the luminol gains oxygen atoms while losing nitrogen and hydrogen. This produces a compound called 3-aminophthalate. The electrons in the 3-aminophthalate are in an excited state. Blue light is emitted as energy is released when the electrons return to the ground state. Learn More The luminol test is only one method used to detect blood. The Kastle-Meyer test is a chemical test used to detect extremely small quantities of blood. If you have leftover potassium ferricyanide, you can use it to grow naturally red crystals. Although the chemical name sounds scary, with the cyanide word in it, its actually a very safe chemical to use.

Friendship and companionship Essay Example | Topics and Well Written Essays - 500 words

Friendship and companionship - Essay Example It clearly shows how close two friends can be. The author was attracted to Queequeg because of his traits and unexpected behavior which is child like and got attracted and started observing his funny behavior by staring at him. His mental ability was so less that he can count only up to fifty. Then he starts counting from one again. By the understanding of the story it is clearly evident the kind of friendship between an innocent friend and a person with good presence of mind. Friends can be so close that they can share literally any thing between them from money to clothes. The story can be a lesson to the friends who regularly argue and fight every now and then. An eye opener, an ideal character, goodness and loyalty at heart. In today's age where gay couples are expressing their love openly, friends like Queequeg and the author are so intimate with each other but with out creating situations like Gay couples. The story idolizes that even money cannot part two friends. For example: when Queequeg took his thirty cents of silver from his pocket and mechanically divides then into half and puts in the pocket author. The author was actually spell bound with the gratitude of the Queequeg. Friends can be so close at times that they share the same bed together. A friendship like this can make an atheist to pray to god.

Speech Class Essay Example | Topics and Well Written Essays - 250 words - 2

Speech Class - Essay Example We got a really a good package and it includes: Car, ticket and the hotel. In this day , we did not sleep we were staying all the day until the day after and at 8 we were on the Denver airport. we went to the rental car office and we gave him the conifrmation number for us and my friend for his licence to get a copy of it. When he just took it and went thru the copy machine he just came back and said: sorry we can not give you the car because you are under 21 and I was under 21 too...!!! The problem is we were planning to go and visit many places, I was sleepy a littile , but when I heard that I got dissapinted ( lol ) and my friend too , and then we told him we already rented an online so we already have a conifrmation number and we tried with him like for half an hour and then he said ok but you will be charging more double more .. The car which we already chose it in the site was : Musting Shelby GT 500 comfortable 2008, but he said because you are under 21 it should be much much much expesive arround 2600$. Then we rented the regular Musting which was much lesser than the Shelby GT. Then , we were looking to the restaurant we were hungury and we didnt eat anything for 4 hours in the plane because we were sleeping, we found a nice little Mexican restaurant right on the beach. Two guys were playing live music with an acoustic guitar. It was a pretty pleasant experience, except for the fact that we were exhausted after flying for over four hours. We bought passes to the Disney World complex that gave us a lot of freedom. The passes that we bought was a regular one but then we discovered that they have two kinds of passes for the 4 parks: the express one and the regular one. For the express pass you dont have to wait on the line unless too many people have the same pass card as you have. But after two or three days, everything started to look the same. That’s when I began to notice how some of the people acted

The Compiled Sync List of The Wizard of Oz :: The Wizard of Oz Movies Music Films Essays

The Compiled Sync List of The Wizard of Oz 001-Echoes 1) The first indicator that everything is going right is the change from "Speak to Me" to "Breathe" which coincides exactly with the fade-in appearance of the name of producer Mervyn LeRoy *Note: In the prologue the word "Time" (one of the songs on the CD) is written with a capital letter even though it isn't at the start of the sentence. Also you will find the word "Heart" capitalized in the middle of a sentence (a sound particular to "The Dark Side of the Moon"). 2) "Leave, but don't leave me ..." Auntie Em appears to say "... Leave ..." to Dorothy and then Dorothy turns to leave looking a bit down in the mouth. 3) Right after the words "... Look around ..." Dorothy looks around. 4) "... Smiles you'll give and tears you'll cry ..." Two men above (Cowardly Lion and Tin Woodsman) are smiling and the man below (Scarecrow) is crying. This one is sort of not on time but worth the mention. 5) "... All you touch ..." Dorothy touches the man (Cowardly Lion) holding a bucket on his arm. *Note: "All you touch and all you see is all your life will ever be" Dorothy's life will only really be all she touches and all she sees in her Kansas home because Oz exists only in her pretty little head. 6) "... When at last the work is done ..." the man (Scarecrow) hits his finger with the hammer (to the beat of the drum no less) and is done with his work. 7) Right after "... Dig that hole ..." the farm hand (Scarecrow) points to the ground as if telling Dorothy to dig a hole. 8) "... Balanced on the biggest wave ..." Dorothy is balancing herself on the fence. 9) "... Race towards an early grave." is said at the moment just before Dorothy falls off the fence rail. ["... Down in the pig-pen sayin' 'keep on diggin' ..." Lyrics from "Pigs (Three Different Ones)" by Roger Waters on the "Animals" CD] *Note: "... Race towards an early grave ..." Perhaps a reference to Judy Garland's untimely death? *Note: Judy Garland died in 1969, the same year we put a man on the moon ... "I'll see you on the Dark Side of the Moon." 10) Song shifts from "Breathe" to "On the Run" at the same time (actually just slightly before) Dorothy falls off the fence.

Frankenstein: How To Read Literature Like Professor

In Frankenstein, Mary Shelley uses symbolism and allegory to depict the actions of the main characters and what their actions truly mean. In How to Read Literature Like a professor, Thomas C. Foster asks his readers what you think a symbol stands for, Foster also writes â€Å"[whatever] you think it stands for, it probably does. † (ninety-seven) Frankenstein contains many symbols, however there is only a few symbols that truly support our findings the whole nine yards.There are six specific symbols and allegories that were purposefully chosen to support our findings: Light, The Bible, Alps, Water, White, and Lightening. light, shelley establishes light as a symbol on the very first page, when walton tells his sister that he’s heading off to a â€Å"country of eternal light â€Å" where the â€Å"sun is forever visible† (letter one. two), our first indication that light isn’t all good when the monsters first sensation is of â€Å"light pressed upon [his] nerves† (eleven.one).The light does not benefit to the daemen, it only allows people know how hideous he truly is. The Bible in frankenstein is not a symbol but in fact it is an allegory, the monster is compared to adam the first man in the Judeo-Christian Tradition, â€Å"like adam i was apparently united by no link to any other being in existence†¦. † later on the monster is also compared to satan â€Å"Many times i considered Satan as the fitter emblem of my condition. † (15.7)The Alps is another important symbol that helps bring the true meaning to the characters actions, Frankenstein goes to The Alps, The Alps combined with it’s beauty took his mind away from his horrible time with the results of his creation. In Frankenstein, water figuratively brings life to Frankenstein whether he is traveling on it or drinking it. it brings him life and inspires him to be close to nature. Walton believes the light of the far North as eternal and full of hope â€Å"What could not be expected in the country of eternal light?†Light is important to all the characters in Frankenstein, Light guides the Character through Important decisions. However many of the decisions that the characters have made could have gone a different way, when Frankenstein decides the truth of how his younger brother died from his family already clearly told the readers what the result might be. Lightning is also a symbol in Frankenstein the tree being burnt by lightning. Here lightning represents the destruction/creation dichotomy. Just as the tree once grew the lightning destroys it.

The Georgia Institute of Tecnologys Library - 933 Words

The Georgia Institute of Technology’s Library is a research institution located in Atlanta Georgia. The prestigious academic library is an integral hub for science and engineering students from around the globe. From its small origins in a one room classroom and only one librarian in 1901; the library officially opened its doors in 1907.As of 2014, the library now requires a large staff of 136-150 employees, in order to maintain the academic library. The materials budget varies from $4,000,000 to $6,818,190. A huge portion is spent on periodicals and databases. A portion of the budget, around $250,000 is deviated for monograph or books. A wealth of resources and imperative information, the library’s approximate collection for titles is 1,061,206; volumes is 2,537,869 (including 248,580 e-books).In 2012, 9,229 volumes have been acquired. I spoke to two different Heads of Acquisitions at GA Tech. First I spoke to Tom Fisher; he has been employed at the GA Tech library for 22yrs. Initially he worked in circulations, now he works in monograph (books) acquisitions as the Assistant Head of Acquisitions Serials. He is responsible for the purchase of monographs and standing orders; receives and processes purchase requests. I also conducted a web interview with Elizabeth Winter, the Assistant Department Head E-resources Coordinator. Both of them provided profound insight into academic acquisitions. The report is a consolidated interview. The Automated systems used are Ex