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

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Definitions:

Ford Mustang

An iconic American sports car model produced by Ford Motor Company, known for its performance and design.

Convertible

A type of car or bond that can be converted into another form, such as a convertible car with a retractable roof or a bond that can be converted into stock.

Population

The entire set of individuals or items that is the subject of study in statistical analysis.

Random Variables

Variables representing numerically measurable outcomes of random events.