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:

Backup Camera

An automotive safety feature that uses a video camera mounted on the rear of the vehicle to display a view behind the car on a dashboard screen, helping the driver to reverse more safely.

Navigation System

Technology or software designed to guide users or vehicles to a destination through the use of maps and GPS data.

Public Domain Software

Software that is not protected by copyright law and is freely available for use, modification, and distribution by anyone.

Copyright Restrictions

Legal limitations placed on the use of copyrighted materials, typically to protect the intellectual property rights of the creator.