Oil Question?

Question

what is the effect on the US Macroeconomy of oil at a high price such as $135 per barrel versus oil at a moderate price such as $60 per barrel.

Answer 1

The guy above is right , but i want to add that what he said is scientific and applies on a higher fixed price and not on a price that soars higher everyday . the difference is that if the price is known to be in that range .yes you can customize your economy on that level . other prices get effected and you have to increase salaries and this will make you contain the debt of the public .

where you will have more cash in your hand .

the current situation is anarchic . the dollar is loosing value very fast and the inflation is heading to unrecorded levels while the price of oil is increasing about a dollar a day . tks .

Answer 2

oil is a staple good, so it has very limited elasticity.  Raising the price of oil will most likely not affect it's demand, and will ultimately inflate the economy because it will raise the need for increased wages and prices of other goods.