When the price of oil rises unexpectedly, the equilibrium price level rises and the unemployment rate rises in the short run.
Equilibrium price refers to the meeting point of quantity of goods supplied by a producer and the customers are able to purchase the goods made available.
In other words, it is a price point where the amount of goods that are sold in the market equals the amount of demands for that goods. Here, there will be no surplus over that goods and no sellers will have to face the problem from overproduction.
In order to reach an equilibrium price, both the consumers and the producers have to believe that they're getting the maximum value every time the conduct a transaction with one another
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