Suppose There Is a Sharp Decline in Oil Prices

question 43

Multiple Choice

Suppose there is a sharp decline in oil prices. According to the theory of economic fluctuations,

• A)real GDP will fall.
• B)real GDP will not change.
• C)its effect on real GDP is uncertain.
• D)real GDP will increase.
• E)potential GDP will fall.

---

Definitions:

Functional Silos

Organizational structures that segment a company into departments or divisions based on functions or roles, often leading to reduced communication and integration between different areas.

Operational Planning

The process of converting strategic goals and objectives into detailed plans and actions to achieve short-term operational goals.

Weighted Moving Average

A statistical technique used to smooth data by giving different weights to different values, commonly used in forecasting.

Phantom Demand

A phenomenon where perceived demand for a product exceeds the actual demand, often due to forecasting errors or miscommunication within the supply chain.