Macroeconomics 12th Edition by Rudiger Dornbusch, Stanley Fischer ,Richard Startz

Exercise 9

The textbook identified the 1973 OPEC oil embargo as a classical example of an adverse supply shock. Go to http://research.stlouisfed.org/fred2 and click on "Categories," under "Prices," select "Consumer Price Indexes (CPI and PCE)." Then find the series "CPIENGNS" titled "Consumer Price Index for All Urban Consumers: Energy." The graph that is shown on the page should be from 1957 to the current year, with recession years shaded. Besides the date 1973 given in the textbook, can you identify on the graph other probable dates when supply shocks (oil shocks) took place Give an example.