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

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19-06-2017
Business

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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

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andriansp andriansp · Answer 1 · 2017-06-27T14:21:42+02:00

If there is an increase in the price of oil, then: unemployment rises. If the central bank tries to counter this increase, inflation rises

When the prices of oil increased, the demand for the product will be decreased. This will force companies to let go of their workers, causing increase in unemployment.
If bank try to counter this (such as by giving loans to those struggling companies), the situation will not be change and the market will believe it can handle the increasee in price, which will increase the rate of inflation.