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

question 130

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:

Psychosexual Stages

A theory proposed by Freud describing how personality develops through five stages (oral, anal, phallic, latency, genital) centered on erogenous zones.

Phallic

Relating to or resembling the penis, often used in the context of Freudian psychoanalysis to describe a stage of human development.

Genital

Pertaining to the external and internal organs of reproduction in both males and females.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations to cope with reality and to maintain self-image.