Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need to reply to group discussion, give good points on the below discussion, also demerits of the below discussion, and final a good opinion on

Need to reply to group discussion, give good points on the below discussion, also demerits of the below discussion, and final a good opinion on the discussion.

"Fracking is one type of technology that is used in the energy market. The process is to extract natural gas or petroleum from shale rock formations. Although someone argues that fracking will cause some potential water contamination and cost a large amount of energy, it plays an essential role in oil and gas production in the United States. Fracking leads to an increase in domestic oil and natural gas production, as well as a decrease in energy prices. Covid-19 indeed brings a few significant impacts on various industries, which includes natural gas and oil production. Due to Covid-19, there are severe restrictions on economic activities and a rapid decline in energy demand. The pandemic reduces fracking operations and causes a decrease in oil prices. Long-Run Aggregate Supply(LRAS): It typically refers to the "potential level of real output" when all the resources are fully utilized. (Hubbard & O'Brien, 2022) Short-Run Aggregate Supply(SRAS): It represents the relationship between the price level and the total output from the short run. To summarize the tables from the textbook, an increase in labor costs, other input costs, and the expected price level will lead to Short-Run Aggregate Supply Curve shifts to the left. The increase in capital and labor inputs or productivity will cause the LRAS curve to shift rightward. Covid-19 leads to a serious reduction in fracking activities due to the decrease in oil prices and demand. As a result, the aggregate supply curve will shift leftward, indicating that the overall supply of natural gas and petroleum declines. Regarding the impacts on Aggregate Demand, the pandemic causes many restrictions on traveling, thus the demand for gas and oil decreases as well. The reduced economic activities and energy demand lead the AD curve to shift leftward as well. The pandemic causes impacted the U.S. in many aspects. Initially, the unemployment rate increased during the pandemic periods. The unemployment and reduction in investment in the energy market result in severe damage to economic growth. Moreover, international trade is limited as well. The declining fracking operations at that time leaves higher energy prices

Step by Step Solution

3.54 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Fracking is a controversial topic that has both pros and cons for the energy market and the environment In this reply I will summarize some of the mai... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Communication Process and Product

Authors: Mary Ellen Guffey

6th Edition

324578679, 9780324578683, 9780324542905, 176721258, 9780324578676, 324542909, 9780176721251, 978-0324542905

More Books

Students also viewed these Accounting questions

Question

1. Let f(x) = 2x+6 if x Answered: 1 week ago

Answered: 1 week ago

Question

We are interviewing quite a few people, why should we hire you?

Answered: 1 week ago

Question

What is quality of work life ?

Answered: 1 week ago

Question

What is meant by Career Planning and development ?

Answered: 1 week ago

Question

What are Fringe Benefits ? List out some.

Answered: 1 week ago

Question

How is videoconferencing different from Web conferencing?

Answered: 1 week ago