The following is an article excerpt that describes the recent move by Washington to pass new legislation that would allow the US Government to sue OPEC for its cartel anti-competitive behavior.

"The bipartisan legislation, known as the No Oil Producing and Exporting Cartels or NOPEC Act, has been introduced in every Congress over the past 20 years but never signed into law."

"The House Judiciary Committee passed a NOPEC bill last month that would open up the cartel to antitrust lawsuits, potentially leaving the oil cartel vulnerable to paying billions of dollars in repatriations."

Source: Washington Examiner, 13th March 2019

Suppose OPEC suddenly collapsed (dissolved) and oil prices plummeted. Based on the aggregate expenditure model of C + I + G + Xn, indicate what would happen to the level of domestic output and GDP. Specify which component of the aggregate expenditure will be affected directly, ceteris paribus, and justify how it relates to the change in the level of output and GDP. Illustrate and explain the impact using the investment demand curve, investment schedule and the AE model.