An economy is a net exporter of crude oil. Draw an AD/AS diagram to show the effect of an increase in global crude oil price on the equilibrium level of real national output of this economy.

 

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Crude oil price, 1 January 2007 to 1 January 2014, US$ per barrel 140.00 130.00 120.00 Num 110.00 100.00 90.00 US dollars per barrel 80.00 70.00 60.00 50.00 40.00 0 2007 2008 2009 2010 2011 2012 2013 2014 Year Crude oil price, 1 January 2007 to 1 January 2014, US$ per barrel 140.00 130.00 120.00 Num 110.00 100.00 90.00 US dollars per barrel 80.00 70.00 60.00 50.00 40.00 0 2007 2008 2009 2010 2011 2012 2013 2014 Year