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ECO10004 Economic Principles Assignment

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Economic Principles (ECO10004)

   

Added on  2020-06-06

ECO10004 Economic Principles Assignment

   

Economic Principles (ECO10004)

   Added on 2020-06-06

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ECONOMICPRINCIPLES
ECO10004 Economic Principles Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1Overview of Oil Crisis................................................................................................................1Price Elasticity of Demand..........................................................................................................3Price elasticity of Supply.............................................................................................................3OPEC failure to Keep the Oil Price high....................................................................................3CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
ECO10004 Economic Principles Assignment_2
INTRODUCTIONSatisfying unlimited wants of consumers with scarce resources is basic concept ofEconomic Principles. During 1970 energy crisis, many countries including Australia facedsubstantial problems and shortages in petroleum. . This report has deeper insight in Australianeconomy and its principles. (Baumol & Blinder, 2015).There was a long boom period in theeconomy of Australia and an energy or oil crisis, it started unemployment in Australia. In 1970members of OPEC decided to raise the oil prices to increase their revenues. Thus, Organisationsof the petroleum exporting countries are having focus on decrease in supply of oil products inorder to have better demand and supply elasticity.MAIN BODYOverview of Oil Crisis.During the 1970's Australian economy faced profound changes in the economic policychoices in a way it perceived. International environment turned unpredictable, previous veritiesof policies of the economy were questioned. Greater turbulence argumentation was in front ofTreasury’s Policy advice, comparing to previous quarter. During 1973 inflation in Australia gaveshock to oil prices and domestic inflationary force. Costs of oil doubled from 1973-1974,(Cashin and et.al, 2014) despite its attempts to limit economic growth through application ofmonetary policy. Along with this, exchange rate also impacts the tariffs in negative manner.Inflation problem in 1974-75 restrained excessive cost pressures in the budget (Downes,Hanslow, & Tulip, 2014)1
ECO10004 Economic Principles Assignment_3

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