Understanding Oil Prices in Business Cycles
This research involved quantifying pricing trends in the oil market by looking at inflation and gross domestic product data. Graphs were made that examined oil prices and inflation data from years before 1973, 1973 to 1990, and after 1990. Comparisons were made using the data obtained from the lag graphs in order to determine which variable drove which. Upon making these comparisons, it was discovered that before 1973, oil prices remained relatively constant, while inflation increased, oil prices from 1973 to 1990 increased constantly along with inflation, and oil prices after 1990 increased constantly, with inflation remaining relatively constant. It was also discovered that there was an inverse relationship between growth and oil prices in all sample periods.
Economics and Finance
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