What is the impact of oil industry

Reference no: EM132530563

BAEC2204 Principles of Macroeconomics - Higher college Of Technology

Part A

Read the given information (attached) and answer the questions.

Question 1. Why government needs to reduce its dependence on oil industry? What steps are taken by Oman's government to reduce its dependency on Oil Industry?

Question 2. What is the impact of oil industry on the employment of labor force over last 4 years? What percentage of the total labor force is employed by the oil industry and what kind of unemployment has been created due to such situation?

Question 3. "We have a business plan," Mr. AL Lawati said. "Rather than exporting an oil barrel for 100 dollars, adding value to it by refining it and having different derivatives, which could also lead to different chemical products." To implement this business plan, it requires huge investments; describe the impact on income of the country with the multiplier effects in this scenario.

Part B

Question 4. Relate Real GDP with inflation rate, percentage change in GDP and percentage change in inflation is low, what does it indicate. Explain the relation for all the four years

Question 5. As per the table, explain which year is having most stable economic growth, describe after evaluating all measureable tools.

Part C

Read the article (attached) carefully and answer the question given below

Question 6. As per the case a dramatic rise in the government debt to GDP ratio from just 5 per cent to around 60 per cent. What is government debt and how does it affects the economic development? This dramatic rise in the debt is good or bad for the economy. Justify your answer.

Question 7. According to the article there is bullish investment in the renewable energy program, explain what will be effect on consumer spending and aggregate supply.

Question 8. Explain the role of central bank in such scenario to minimize the fiscal deficit. Explain the steps to be taken by central bank to control fiscal losses.

Part D

Read the attached article and answer the questions given below.

Question 9. As stated in the article "The Sultanate of Oman is classified as a high-income country and is one of the most developed and stable countries of the Arab world, "what factors make Oman stable and high income country. Explain your answer with indicators which justifies this statement.

Question 10. One of major steps taken by Oman government is to keep its currency pegged against USD. In what way it helps the government in maintaining its Balance of Payment. Explain the Balance of Payment situation in Oman.

Attachment:- Principles of Macroeconomics.rar

Reference no: EM132530563

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