need help with a simple essay question ^^ (1 Viewer)

wyho

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hello everyone im currently doing the unsw foundation studies which is an alternative for the hsc, i have this simple essay question for my assignment :

topic: rising world oil prices and their impact on an economy.

question: outline the main forces responsible for rising world oil/petrol prices in 2006. Discuss some of the economic effects of rising oil prices on the economy of one country. is there any possible effect?

please give me an outline in what to do and talk about as i am new to economics and i dont know much about this topic. thankx
 

TNguyen

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Outline

Introduction

Body: As the demand for oil increase, and the supply of the oil increases as according to the law of Supply, it could be safe to say that, by the Keynesian Theory, level of pimples will increase


Conclusion
 

wuddie

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this may not be as helpful as you think, but at least it's better than nguyen's

rise in oil price -> increase in inflation -> rba or central banks around the world will be more likely to increase interest rates. obviously the more oil dependent the economic is, the greater impact it will be. -> more unequal distribution of wealth, poor people will the forced to fork out a greater proportion of their income to finance petrol -> greater social costs...

the list goes on, but the point is that economics is really about a series of chain reactions, so think more of what will probably happen if this or that occured. hope this helps
 

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