Question: Oil prices (a FRED question): Using the FRED database, create a graph of the price of crude oil since 1970 based on Spot Crude Oil

Oil prices (a FRED question): Using the FRED database, create a graph of the price of crude oil since 1970 based on “Spot Crude Oil Price.”

(a) Display this graph. Why are the numbers in this graph different from those in Figure 10.5? (Hint: what are the units?)

(b) How much more expensive (in nominal terms) is oil today than it was in 1975 and in 1995? How does the current price compare to the peak price?

(c) What economic factors might explain the general changes that you see in oil prices?

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