1973 Oil Crisis-impact on aus GDP

• Australian School of Business
• School of Economics
• ECON1102 - Macroeconomics 1

Resource Sample

In 1973, the Organisation of Petroleum Exporting Countries (OPEC), engineered a quadrupling in the price of oil. The government reaction to this was to tighten fiscal policy and to increase interest rates. Given that oil is vital input into most production processes, using the aggregate supply-aggregate demand diagram explain the likely impact of these on Australia's inflation rate and GDP. As Australia does have heavy reliance on oil to maintain the functioning of its industries, it was affecte...

Resource Topics

• AD-AS model
• Aggregate demand
• Business
• Economic theories
• Economics
• Gross domestic product
• Inflation
• Macroeconomics
• Petroleum politics
• Political economy
• Recession
• Stagflation
• Unemployment

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