MEB-KNOWLEDGE SESSION

Arthashastra - The Economics Club

An increase in the price of oil will also lead to a rise in the
price of other goods since it is a source of energy for both
consumers and industry.

This leads to falling in the purchasing power of the

economy , resulting in a fall in consumption & investment

This would lead to a fall in planned expenditure which in

turn shifts the IS curve

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C
B
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