PER 2015
The use of gas prices falling can be very beneficial to an economy in many ways. If the price of raw materials
http://www.eia.gov/todayinenergy/detail.cfm?id
falls in an economy, businesses are likely to grow at a quicker rate as less capital is spent on the upkeep of the business, for example. This includes expediture on things like heating. However, the amount of money saved due to lower prices of raw materials such as shale gas effects different businesses differently as it depends on how much raw materials a business uses or sells. So, a business such as AGL Resources, based in Georgia, USA, who are a natural gas company, will be greatly affected through this. F f f f f f f ff f f f f fe f e fe fe f ef e fe f e fe f e fe f ef e f ef e f e fe fe f e Secondly, if the raw material price in an economy is low, this can mean higher exports for an economy. Using the equation AD= C + I + G +(X-M), we can see that this will result in higher AD and therefore GDP. However, this increase in AD has implications as it can cause a large increase in the price level, which can cause inflation. In this case it would be demand pull inflation. This is shown on the diagram below: f f f f f f ff f f ff f f f f f ff f ff ff ff f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f ff f f f http://www.bized.co.uk/virtual/dc/copper/th
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