Falling Oil Prices & Canadian Economy (1200 words)

The purpose of this project is for you to try out both micro and macroeconomic tools on the "real world."
Together with the members of your group you will:
   
1. Select a topic that interests you from the list that accompanies or choose by yourself talking with your group.

2. Analyze the story in economic terms; that is, present the story in terms of supply-and-demand, price discrimination. taxation and government revenues or some other economic tool we've covered in class. What policy might improve the situation? Is government intervention necessary? At what level of government should a new policy be administered -- local, provincial or national?
• Define the topic
Your answer should be backed up with important facts and related economic hypotheses and should contain real-life examples to illustrate how things function in reality.
• Use all the resources available to you to help expand your topic and make it more believable. If you rely solely on your textbooks, you are unlikely to produce an exceptional paper that is current. Your paper should be strongly relevant to the real world, hence the significance of relevant information in journals and newspapers as sources.
• Include all the parts of an essay. The introduction is one of the shortest parts of an essay and contains a minimum of three or four sentences. The body is the second part and is the main part of the essay, where you systematically back up the thesis statement you presented in your introduction. The conclusion is the end of the essay. It normally has the same idea as the introduction, except it is written in different words and phrases and sums up what you learned about your topic.

Do you have to use table, math and graphs?

Only if it serves your argument. (If you can make you're argument without table math or graphs) Use table, mathematics, graphs, charts whatever helps you explain and defend your analysis. "Creativity" does not mean "cute."

One Sample Topic

The world price of crude oil has dropped from close to $100 to around $50 is the last year. At Ontario gas stations the price of regular has dropped from around $1.35 to around $1.00.
1. What is likely effect on Alberta and Canadian Federal tax revenues?
2. Short term consumer behavior of Ontario drivers?
3. Long term consumer behavior of Ontario drivers if the price gas price is expected to stay low for at least a few years.
4. Investment spending plans for the Alberta producers?
5. Employment trends is each of Alberta and Ontario?
You need not answer each of the questions in your paper. Pick just at least two and answer each as thoroughly you can in a 4-5 page paper

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Introduction
Oil has been one of the most important inputs used in operations and the changes in prices of oil can have a significant impact on the economy. This is due to the fact that oil is used for almost all operations in the economy. It continues to be one of the major sources of energy. While falling oil prices leads to decline in inflation and is expected to stimulate growth due to rising real incomes of consumers, the Canadian economy has been suffering slowdown which is expected to continue further. This report presents an analysis of the impact of oil prices on the growth rate of Canadian economy.

Analysis
As per Babad (2015), the expected growth rate of Canadian economy is only 1.5% this year and in 2016, it is expected to decline further to 1%. The declining oil prices have been proving expensive for the Canadian economy since it has been negatively impacting the level of Government finances as well as employment in the country....