The high price of oil is
bad for economy. Those countries who have import oil faces a lot of problems,
these problems included, transport service problem, inter transport of good
falls into huge trouble, because as oil increases goods price increases as well.
Import and export gets hectic situation just because import and export depends
upon oil. Thus, economy suffers a lot when oil prices get into trouble.
A high price of oil will first caused cost-push inflation
because oil is used in the production of most of goods.As a result, producer
will faced increasing price of raw materials as oil effect on other
resources e.g gas.so if price of oil increase then the total output will
decrease and growth of economy will be slow.
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