Show an understanding of the materials for supply demand, and economic equilibrium for part 1 and 2 of my paper. Part 1 is Economic events and activity analysis and part 2 is Economic concentration evaluation.

Acrobat Reader File Edit View Sign Window Home Tools Competency+1.pdf x --- --- Help JUN 10 1 / 6 Competency+1.pdf 100% 19 The Economic events that I have analysis will tie in the influence of supply, demand, and economic equilibrium with two major economic events that have happened in the past. The first event being the rapid price increases, such as those caused by the 1973 oil embargo. Supply was influence during this major event in history by the amount of oil that was being provided to the U.S. Causing a gas shortage for the U.S. The oil embargo put a strain on the U.S. economy, that depended heavily on foreign oil. This all was to retaliated against the US for re- supplying the Israeli military and giving them the leverage needed in the post war peace negotiation. The demand grew for oil while the prices increase. This upward spiral in oil prices with global implication was because of the embargo. The price of oil by the barrel first doubled, and then quadrupled bringing consumers the challenge of paying the skyrocketing prices. Economic Equilibrium was influenced during this event while the buyers face increased prices the sellers have a lack of excess production capacity, making it difficult to bring more oil to the market with the increase in demand. With the oil embargo against the U.S this would further complicate the Macroeconomic environment in the 70s. Inflation pressure and slower growth throughout the economy had a widespread effect due to the higher oil prices. The forces have a inverse relationship when one rises the other fall and the other way around. The second event being the crippling interest rates imposed by the federal reserve, such as those during the 1975-1985 time period. After learning about this event, we will tie supply, demand and economic equilibrium into some of the things that were going on during this time. During this major event in history "The origins of the great inflation were policies that allowed for an excessive growth in the supply of money-Federal Reserve policies". The interest rates would show an increase in money supply. tv NA **** A En 1 L 8 32 (? Sat Jun 10 10:02 AM Search 'Edit Image' Export PDF o Adobe Export PDF Convert PDF Files to Word or Excel Online Select PDF File Competency+1.pdf Convert to Microsoft Word (".docx) Document Language: English (U.S.) Change Convert Edit PDF Create PDF Sign In Comment NA Combine Files Convert, edit and e-sign PDF forms & agreements Free 7-Day Trial X