Technological Change, Such as the Information Technology Revolution of the 1990s

question 143

Multiple Choice

Technological change, such as the information technology revolution of the 1990s can shift the aggregate supply curve outward.If, at the same time, the government is decreasing spending, the most likely outcome of these two factors is a(n)

• A)increase in the price level.
• B)decrease in the price level.
• C)increase in real GDP.
• D)decrease in real GDP.

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Definitions:

Break-Even Default Rate

The rate at which defaults on loans or investments would need to reach before an investor or institution starts to lose money.

Economic Order Quantity

A calculation method to find the best order quantity that reduces the overall storage and ordering expenses in stock management.

Variable Cost

Costs that vary in relation to a company's operations.

Carrying Cost

Expenses incurred by holding inventory or assets, including storage, insurance, and spoilage costs.