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:

Cash Paid

Money that a company spends during a period for operating activities, investments, and financing activities, excluding non-cash transactions.

Dividends to Stockholders

Payments made to shareholders out of a corporation's profits as a reward for investing in its shares.

Cash Paid for Wages

The amount of money disbursed by a company to its employees as compensation for labor.