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:

Fixed-position Layout

A manufacturing layout where the product remains stationary, and workers, materials, and equipment are moved to the product site.

Process-oriented Layouts

Facility layouts designed around the sequential order of operations for specific products or product families, often seen in manufacturing settings.

Labour Assignment

The process of allocating human resources to different jobs or tasks within an organization to ensure efficient operation.

Process Layouts

An arrangement of resources in a production facility where similar activities or functions are grouped together, based on the type of process they are involved in.