If Oil Prices Increase, Then in the Short Run, Real

question 10

Multiple Choice

If oil prices increase, then in the short run, real GDP will ________ and the price level will ________.

• A) increase; rise
• B) increase; fall
• C) decrease; rise
• D) decrease; fall

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Definitions:

Regulative Commitment

An individual's adherence to the rules and policies of an organization due to awareness of costs associated with leaving it.

Attitude Change

The process by which an individual's feelings, beliefs, or behaviors towards a particular entity, idea, or person are altered.

Persuasion Process

A series of steps aimed at changing a person's attitude or behavior towards a topic, idea, or action, typically involving the presentation of persuasive messages.

Social Learning

A theory which suggests that people learn new behaviors by observing and imitating others, as well as through the direct experience of rewards or punishments.