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.

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Definitions:

Descriptive Norm

Social norms that describe what most people do in a specific context, without prescribing what should be done.

Counternormative

Behaviors or actions that go against the accepted standards or norms of a society or group.

Interpersonal Feedback

The process of giving or receiving information about behaviors, attitudes, and perceptions between individuals to improve communication or performance.

Social Pressure

The influence exerted by society or a social group on individuals to conform to expected norms, behaviors, or attitudes.