1. NUR ALIENA SYUHADA BINTI SURAIDI 18DGT13F2004 NUR IZZATI BINTI ISMAIL 18DGT13F2001 MUHAMMAD HILMI HIDAYAT BIN MOHD PADILAH 18DGT13F2005 MUHAMMAD SHAHRULNIZAM BIN ISMAIL 18DGT13F2003 MUHAMMAD ANAS IZZUDDIN BIN OTHMAN 18DGT13F2002

2.  “As a general rule of thumb,every $10 increase in the price of a barrel of oil reduces the growth of the gross domestic product by half a precentage point within two years.”

3.  There is no source cited for this rule of thumb,which implies an extraordinarily large impact of oil prices on GDP (Gross Domestic Product).  Example :The fall of oil prices from an average of $91 a barrel in 2008 to $53 a barrel in 2009

4.  Each 1 cent increase in gas prices takes $1 bilion out of consumers’ pockets.  A $10 bilion increase in the price of a barrel of oil would imply an increase in gas prices of about 25 cents.

5.  The reduction in spending will not be 100 percent of the higher price of oil many consumers will dip into their savings.

6.  On net,it is unlikely that the actual impact of a $10 increase in the price of a barrel of oil would be even half as large the rule.