When the Price of Oil Rises Unexpectedly,the Equilibrium Price Level

question 84

Multiple Choice

When the price of oil rises unexpectedly,the equilibrium price level ________ and the unemployment rate ________ in the short run.

• A)rises; falls
• B)rises; rises
• C)falls; falls
• D)falls; rises

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Definitions:

Economic Science

The study of how societies use scarce resources to produce valuable commodities and distribute them among different people.

Trade-Offs

The sacrifice of one thing for another, recognizing that choosing some benefits necessitates giving up others.

Production Decisions

The determination of what, how, and for whom goods and services will be produced by a firm.

Output

The total amount of goods or services produced by a company, sector, or economy.