The Federal Reserve Economic Data (FRED) database is available at https://fred.stlouisfed.org/. Go to FRED and search for data on crude oil prices. You will find several series; click on one of them, such as the Global price of WTI Crude. Adjust the dates to focus in on the 2006–2010 period. The 2008–2009 recessions is shown by the shaded area. 

a. Print the graph.

b. What happened to crude oil prices during the recession, especially as the recession continued? 

c. Do you think the change in price was driven more by a shift to demand or to supply? Using the lists of important demand and supply shifters from Chapter 3, what was the major factor shifting demand or supply?

d. FRED has several series for the oil price. Why doesn’t it matter which one we use? 

e. Optional: Using what you learn in the next chapter, draw a demand and supply curve diagram. Label the initial price the “pre-recession price.” Show the new demand or supply curve. Label the new price the “recession price.”