Short Essay #5
Covering Chapter 10
This week, you reviewed the concept of supply shocks in chapter 10. The attached article, Mohaddes and Pesaran (2016) investigates the impacts of oil supply shocks in various countries. Please read this article carefully and develop a two-page essay by addressing the following questions.
1. Provide a brief summary of the article.
2. What are supply shocks demonstrated in the article?
3. Discuss main contributions of each article to existing knowledge of investment and its impacts. In other words, how does each article deal with the concept of investment or/and its impacts differently, compared to existing literature?
4. What are major findings of the article in terms of the economic impacts of oil supply shocks?
5. What is the biblical implication of the major findings (This is an open-ended question).
– All papers must use a minimum of 3 sources. You must cite only peer-reviewed journal articles although the textbook is an acceptable source (however, keep in mind that the textbook is not peer-reviewed resource though).
– You MUST NOT cite online sources or any articles without year of publication and author’s name. Also, you should not cite Wikipedia and investopedia.
– All papers must follow all APA requirements. (I am only looking for accuracy of APA formatting for references)
Also, please refer to the following link, to learn more about APA style and formatting.
https://owl.english.purdue.
– Do not just provide your opinions but your essay must demonstrate mastery and accuracy of relevant economic concepts and theory to receive full credit
– Minimum words requirement: 800 words (not including abstract, title and reference pages)
Solution Preview
Introduction
When the supply of oil is unstable globally, there are chances thatoil supply shocks occur hence leading to oil price fluctuations. Price of oil is a crucial determinant of the economic health of a nation. Higher rates of oil result in slow economic growth in the net importing countries (Ewing, Kang, and Ratti, 2018). On the other hand, when the prices are low, the net exporting countries experience a relatively sluggish economic growth.
(986 words)