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Thursday, May 22, 2008

About Economics: Weekly Update (Vol. 6, No. 21)

About.com   Economics
In the Spotlight | More Topics |
  from Mike Moffatt
A reader e-mailed me a few weeks ago offering a bet - that oil would hit $135 sometime in 2008. I didn't take the bet, as I thought it was a bit of a 'gimme' for him. Turns out I was right - oil just hit $135 this morning.

 
In the Spotlight
Supply Shocks, Demand Shocks and the AD/AS Model
We teach at AD-AS (aggregate demand/aggregate supply) model in economics-based courses at Ivey, despite the fact that not everyone is a fan of the model. The model does have strengths in understanding macroeconomic phenomenon. This article in the Wall Street Journal would make for the basis of a terrific test question: [click on the title to read more]

 
         More Topics
Oil prices: 1970s vs Now
A really terrific graph at Angry Bear showing how the run-up in oil prices between 1970-1980 looks almost identical to the run-up in oil prices between 1998-2008. See: Oil prices: 1970s vs Current Situation. [Click on title to read more]

 
Peak Oil... Demand?
From the Inquisitive Mind: The New Peak Oil: Peak Demand. An important reminder that the Marshallian scissors have two components - supply and demand. And no, oil is not "different" because we all use it. There are lots of things we all use... like springs. Anyhow, a few points: [click on the title to read more]

 
 
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