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Topic: |
History
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Number of pages / Number of words: |
14 / 3797 |
Essay's paper body
At the same
time, they believed that they had been cheated by the elite out of
their share of the industrialization wealth (Orwin 43).
About this time, the middle class, which included students,
technocrats, and modernist professionals, became discontent with
the economy. The key event should have further stabilized the royal
dictatorship, but the increase in oil prices and oil income beginning
in 1974 caused extreme inflation...
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The key event should have further stabilized the royal
dictatorship, but the increase in oil prices and oil income beginning
in 1974 caused extreme inflation. This was due to the investment
strategy followed by the Shah, which led to a spectacular 42% growth
rate in 1974. (Cottam 14). And because of the Shah's support structure
which enabled the new rich to benefit from inflation, the government
effort to deal with inflation was aimless...
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General points of the essay
Suppose the British economy is at long run equilibrium when it suffers an external shock due to a 15% increase in the price of oil, believed to be permanent.
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