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

question 43

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

Base-Of-The Pyramid Markets

The largest, but poorest socio-economic groups in the world, considered as potential consumers, people living on less than $2.50 a day.

Benefit Corporations

A legal structure for a business designed to prioritize social and environmental objectives in addition to profitability.

Social Goals

Objectives that focus on improving society or addressing social issues, often pursued by individuals, organizations, or governments.

Alleviate Poverty

Efforts and policies designed to reduce or eliminate poverty in a population.