Using complete sentences, in your own words explain howBaumeister and Kilian (2016)define an oil...

Question

Using complete sentences, in your own words explain howBaumeister and Kilian (2016)define an oil price shock.

Responses should be no more than one page in length. They should be long enough to answer the question posed adequately. Acceptable reading responses are usually at least 1/2 page (single spaced, 12 pt font).
Use your own words and write in complete sentences. Do not copy from the authors' writing without attribution, paraphrase without attribution, or include overly-long or unnecessary quotes to fill space.

Cite specific evidence from the reading to support your conclusions.

forty-years-of-oil-price-fluctuations-why-the-price-of-oil-may-still-surprise-us-uebgmyav.pdf

Komalavalli · Accepted Answer

Author examines how the price of oil fluctuated in the past forty years. They mentioned that the oil market in United States was intervened by government agencies before 1973.Price of oil in US was fixed by following price ceiling method. This system of regulating oil price ended in 1970’s, because there was a gap between demand and oil supply in domestic market. To close the shortage US imported oil from Middle east countries, during 1973-74 the imported oil price quadrupled this forced to stop the government agencies price ceiling intervention. They found that the oil crisis of 1973-74 had occu
ed due to excess demand in the economy because of growth of oil based industries. Oil crises in 1979-80 had occu
ed to Iranian revolution and expectation future demand growth led to increase in inventory oil coupled with fall in supply of oil. During 1980 when a non OPEC nation enter in to oil market there was a substantial reduction in share of OPEC members in...

Using complete sentences, in your own words explain howBaumeister and Kilian (2016)define an oil price shock. Responses should be no more than one page in length. They should be long enough to answer...

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