Consider the Following Two Headlines Appearing in the Same Day

question 50

Multiple Choice

Consider the following two headlines appearing in the same day: "Federal government announces major new infrastructure investments" and "New technology drives down transport costs." Choose the statement below that best describes the likely macroeconomic effects.

• A)The AS curve shifts to the left; the price level rises and real GDP falls.
• B)The AS curve shifts to the right; the price level falls and real GDP rises.
• C)The AD curve shifts to the left; the price level falls and real GDP falls.
• D)The AD curve shifts to the right; the price level rises 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.

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Definitions:

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have the same product needs.

Rolex Watches

A brand of luxury watches known for their quality, prestige, and performance, often considered a status symbol.

Government Data

Information collected, created, or maintained by government agencies that can include statistics, reports, and records on various aspects of society, the economy, and the environment.

Outdated Quickly

describes items or technologies that become obsolete or less effective swiftly due to rapid advancements or changes.