Effects of oil prices on economy

Effects of oil prices on economy

Order Description

Assignment:
Global oil prices have fallen sharply over the past year, leading to significant revenue shortfalls in many energy exporting nations, while consumers in many importing countries are likely to have to pay less to heat their homes or drive their cars.

Question:
How oil prices affect the AD or AS of an economy?

1) The petrol exporting nations
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The order is to be written in a report form with introducing, main body and conclusion , and please follow the outcomes :

a) Identify the nature of resource cost structure and the practical significance of different costs;
b) Explain the factors influencing optimum size and the significance of demand and supply relationships;
c) Demonstrate an understanding of the relevance and limitations of economic theory to management decisions.
Use this book as well : Economics and the business environment by John Sloman and Elizabeth Jones.

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