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:

Hostile

Showing or feeling opposition or dislike; aggressive.

Grandchildren

The children of one's son or daughter, representing the next generation in a family lineage.

Live

To be alive or exist; in broadcasting, it refers to a real-time transmission of an event.

Stressful Experience

An event or situation that significantly challenges an individual's ability to cope, potentially leading to psychological stress and physical health problems.