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Item Restricted Oil price, real GDP, and real exchange rate shocks and commodity price responses(2008-03) Angeles, Jan Erik R.; Velasco, Kevin Tristan S.With the steadfast increase in the prices of oil in recent years, what does it spell for the economy of the country and its people? As the prices of oil continue to increase, exchange rate of the country continues to depreciate and prices of commodities persistently increase. Although price rollbacks decrease the prices on certain commodities, there haven't been enough to negate the volume and gravity of the price increases before it. The same is true for the exchange rate of our currency. That being said, do oil price shocks have a direct negative or positive impact on the Philippine economic indicators, namely: gross domestic product, exchange rate, and domestic prices of commodities? This study explores and analyzes the relationship of oil price shocks on the different variables of the Philippine economy. Specifically, the study will uncover the velocity and magnitude of oil price shocks and their effects channel into the economic indicators and finally into commodity prices. This will give an insight to how much the Philippine economy relies on oil and how it responds and reacts to sudden increases in oil price.