Consider the Following News Headline: "Information Technology Costs for Canadian

question 32

Multiple Choice

Consider the following news headline: "Information technology costs for Canadian firms continue to drop." Choose the statement below that best describes the likely macroeconomic effect.

• A)The AD curve shifts to the right; the price level rises and real GDP rises.
• B)The AD curve shifts to the left; the price level falls and real GDP falls.
• C)The AS curve shifts to the left; the price level rises and real GDP falls.
• D)The AS curve shifts to the right; the price level falls and real GDP rises.
• E)The AD and AS curves both shift to the right; the effect on the price level is indeterminate and real GDP rises.

---

Definitions:

Cotton Mather

A New England Puritan minister, prolific author, and pamphleteer, best known for his role in the Salem witch trials in the late 17th century.

European Goods

Products manufactured in Europe that were historically traded or brought to other regions, often influencing global trade patterns and local economies.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Colonies

Territories under the political and economic control of another country, often established during periods of exploration and exploitation.