The Aftermath Of HurricanesEssay Preview: The Aftermath Of HurricanesReport this essayRecently, the U.S. was attacked by the two hurricanes, Katrina and Rita. Due to these natural disasters, AmericaЎЇs economy will be affected severely if the Federal Government doesnЎЇt take actions in time. The aftermath of hurricane Katrina has already appeared: the unemployment rate has increased, the gasoline price has increased, etc.
Being in a mixed economical system, how the government can help to maintain a stable price level or even increase our capacity to produce during the hardest time seems to be the most important and intractability.
A basic challenge for policy makers is to eliminate unemployment and keep the economy on its Production Possibilities Curve, whereas the direct infection of Katrina is unemployment. To the statistics, the newest unemployment rate has risen to 6.1%.
ÐŽoTightening too much could rattle the finial markets and know away the supports under housing, which has been a major driver of consumer spendingÐŽ±. This will lead to a severely weakened economy eventually. Obviously, the above statement shows the rule of the mixed economies. Both market and government should arrange the economic system, include the government formulating some laws and policies to keep the market stable.
It left the question of how the Federal government will deal with the existing problem so as to avoid inflation growing severely as the aftermath of the hurricanes. Inflation is due to the factors of how much money people are able to pay for their purchases, how the situation of supply and demand is, and how the government policies are.
For the hurricane has strongly destroyed the city of New Orleans, the aftermath of Katrina has claimed almost all of the jobs of the citizens, and the supply disruptions as well. LetЎЇs see how the supply and demand curve is likely to change? The supply shocks from Hurricanes outside of energy add to potential core price pressures. If the demand falls by the same amount as the loss of output, the demand curve shift rightward illustrates an increase in demand. When demand increases, the equilibrium price rises, and there comes the shortage. When shortage appears, the market has the function of self-adjusting prices. Thus, a higher price tends to evoke a greater quantity supplied, that is, the buyers well compete for services by offering to pay higher prices. These relate to the statement that says, Ўoshortages will
be the same once the demand stabilizes. (When the market is at its highest and the supply is at its lowest, that’s equilibrium.) There are two kinds of shocks, a sudden increase in the volume of the supply and a sudden shortage. A sudden increase in the price is a crisis, and it needs a temporary solution from which to escape. The answer is that the supply needs to stabilize. This equilibrium is defined by a “temporary shock,” a short-term event in the future. For example, a recent spike in the volume of oil in the United States would cause an immediate change in U.S. oil prices, so that the global price of oil will have fallen to $34/Btu (roughly $4/Btu). This means that even if the increase in global oil price takes place, the global oil price would continue to rise at all costs. The supply and demand curve then appears to be reversed, with the price of all of the oil being lower, and prices rising as well, leading to the demand-supply chain increasing. This story of equilibrium implies, more or less clearly, that there will always be a long and tight supply curve, as there is an upper bound on where prices will be when the supply appears unstable, and a lower bound under conditions of extreme volatility. In other words, in such a scenario, supply and demand relations are reversed, rather than changing. What is an equilibrium supply? In economics, equilibrium gives us an answer, especially for people whose only concern is to provide information rather than demand. But there are many ways in which equilibrium has to be fulfilled. By the time equilibrium has been fulfilled, there is no way to go back to an alternate process, with all of the demands as well as current levels of human activity. In this case, equilibrium is one of the many reasons why the price of oil has not fallen quite as quickly, and the price hasn’t risen a little. A large part of the reason for this is probably because the price of oil does not go up as rapidly as its historical history would suggest. Most of the oil we see today is coming from countries that did not become the world’s largest emitter of crude oil, with a high-tax burden on the oil industries. (A few of those countries were under heavy reliance on foreign oil because export controls provided a means to control their natural resource supply. The fact that oil consumption levels have remained constant since at least the 1960s and never fell below 200 barrels a day indicates that the oil industry is relatively insulated from foreign oil demands. Thus, the prices of U.S. crude would not have fallen on average by the time the new oil price emerges.) However, there is a growing body of evidence to back up the suggestion that we aren’t dealing as we may have initially thought. The most compelling evidence, however, comes from the latest research. From a recent study from the Organization for Economic Cooperation and Development. The authors conducted a small study with a third group of countries on their data collection system of the Organization for Economic Cooperation and Development. In the study, we found that countries that had the lowest growth rates (0.2 percentage points) reported a reduction in their consumption levels when their
be the same once the demand stabilizes. (When the market is at its highest and the supply is at its lowest, that’s equilibrium.) There are two kinds of shocks, a sudden increase in the volume of the supply and a sudden shortage. A sudden increase in the price is a crisis, and it needs a temporary solution from which to escape. The answer is that the supply needs to stabilize. This equilibrium is defined by a “temporary shock,” a short-term event in the future. For example, a recent spike in the volume of oil in the United States would cause an immediate change in U.S. oil prices, so that the global price of oil will have fallen to $34/Btu (roughly $4/Btu). This means that even if the increase in global oil price takes place, the global oil price would continue to rise at all costs. The supply and demand curve then appears to be reversed, with the price of all of the oil being lower, and prices rising as well, leading to the demand-supply chain increasing. This story of equilibrium implies, more or less clearly, that there will always be a long and tight supply curve, as there is an upper bound on where prices will be when the supply appears unstable, and a lower bound under conditions of extreme volatility. In other words, in such a scenario, supply and demand relations are reversed, rather than changing. What is an equilibrium supply? In economics, equilibrium gives us an answer, especially for people whose only concern is to provide information rather than demand. But there are many ways in which equilibrium has to be fulfilled. By the time equilibrium has been fulfilled, there is no way to go back to an alternate process, with all of the demands as well as current levels of human activity. In this case, equilibrium is one of the many reasons why the price of oil has not fallen quite as quickly, and the price hasn’t risen a little. A large part of the reason for this is probably because the price of oil does not go up as rapidly as its historical history would suggest. Most of the oil we see today is coming from countries that did not become the world’s largest emitter of crude oil, with a high-tax burden on the oil industries. (A few of those countries were under heavy reliance on foreign oil because export controls provided a means to control their natural resource supply. The fact that oil consumption levels have remained constant since at least the 1960s and never fell below 200 barrels a day indicates that the oil industry is relatively insulated from foreign oil demands. Thus, the prices of U.S. crude would not have fallen on average by the time the new oil price emerges.) However, there is a growing body of evidence to back up the suggestion that we aren’t dealing as we may have initially thought. The most compelling evidence, however, comes from the latest research. From a recent study from the Organization for Economic Cooperation and Development. The authors conducted a small study with a third group of countries on their data collection system of the Organization for Economic Cooperation and Development. In the study, we found that countries that had the lowest growth rates (0.2 percentage points) reported a reduction in their consumption levels when their