Suppose OPEC Unexpectedly Collapses, Which Leads to a Fall in the Price

question 53

Multiple Choice

Suppose OPEC unexpectedly collapses, which leads to a fall in the price of oil. As a result, the price level

• A)rises, and real GDP increases.
• B)rises, and real GDP decreases.
• C)falls, and real GDP increases.
• D)falls, and real GDP decreases.
• E)rises, and real GDP remains the same.