Watch thye following YouTube Video:
-What Is Fracking? National Geographic.
This week\’s topic is the impact of the increase in the supply of domestic natural gas and oil from the fracking boom. The topic is NOT the pros and cons of fracking per se. So do not discuss that. (Also be aware that much of the information available on the topic is inaccurate and/or bias. \”For an example, see letter from the Department of Energy to Nature magazine regarding inaccuracies in a December 2014 article.)\”
(That Letter is gonna be attached as a file).
Rather the purpose is to better understand the impact on the US Aggregate Supply from a higher supply of energy and the lower energy prices that follow an increase in the supply of energy. Since energy is an input into most all production and transportation, changes in energy prices ripple through the economy and impact prices in all sectors of the economy.
1) Review the informational video above.
2) Read the textbook article (pp. 530-531): (\”Fracking\” Transforms Energy Markets in the United States.)
Hubbard, R. G., OBrien, A. P. (2014). Money, Banking, and the Financial System (2nd ed). New York, NY: Pearson Education. ISBN: 9780132994910
3) Review the Aggregate Supply and Aggregate Demand (AS-AD) graphs and discussion in the text.
4) Undertake additional research as necessary, but be aware of the factual and bias problems with many of the materials (see File with the letter from the Department of Energy already attached). Remember that citations and referernces are needed.
5) What is the most likely impact on energy prices and the American Aggregate Supply from fracking? Illustrate through discussion of how the AS-AD graph would change (you do not have to draw the graphs, just refer to the ones in the text). How do these changes impact the American economy?
6) Define terms as appropriate.
THE PAPER SHOULD CONSISTS OF AT LEAST 500 WORDS.
PLEASE MAKE SURE TO INCLUDE THE REFERENCES ON THE ASSIGNMENT. IT\’S VERY IMPORTANT TO GET MY GRADE, WITHOUT THEM I COULD GET A ZERO ON THE ASSIGNMENT. THANKS.
The purpose of this exercise is to demonstrate your understanding of the material.