Since Norway Has Close Trading Links with the Euro Zone

question 26

Multiple Choice

Since Norway has close trading links with the euro zone

• A) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly.
• B) a small reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly.
• C) a small reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly.
• D) a big reduction in its price will lead to an increase in euro zone demand for Norwegian goods that is large relative to Norway's output. Thus, full employment can be restored fairly quickly.
• E) a big reduction in its price will lead to a decrease in euro zone demand for Norwegian goods that is small relative to Norway's output. Thus, full employment can be restored fairly quickly.

---

Definitions:

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Correlations

Statistical measures that indicate the extent to which two or more variables fluctuate together.

Social Comparisons

The process by which individuals evaluate their own abilities, achievements, and conditions by contrasting them with those of others.

Self-Evaluate

The process of introspectively assessing one's own abilities, actions, and characteristics.