Asked by
Shivani Gupta
on Nov 16, 2024
Verified
If there is an increase in the price of oil, then
A) unemployment rises.If the central bank tries to counter this increase, inflation rises.
B) unemployment rises.If the central bank tries to counter this increase, inflation falls.
C) unemployment falls.If the central bank tries to counter this decrease, inflation falls.
D) unemployment falls.If the central bank tries to counter this decrease, inflation rises.
Price of Oil
The cost per barrel of crude oil as determined in global markets, influenced by factors such as supply, demand, geopolitical events, and market speculation.
Unemployment
Is the condition of someone actively looking for employment but unable to find work, often used as a key economic indicator.
Central Bank
The principal monetary authority of a country, responsible for regulating the money supply, issuing currency, and managing interest rates to achieve economic objectives.
- Assess the effects that supply shocks have on output in the economy, inflationary pressures, and the Phillips curve.
- Understand the capabilities and constraints of central bank interventions in mitigating negative economic fluctuations.
Verified Answer
AN
Learning Objectives
- Assess the effects that supply shocks have on output in the economy, inflationary pressures, and the Phillips curve.
- Understand the capabilities and constraints of central bank interventions in mitigating negative economic fluctuations.