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:

Benefit

An advantage or profit gained from something.

Coherence Devices

Coherence devices are linguistic tools used to connect ideas logically and smoothly in texts, ensuring clarity and comprehension for the reader.

Important Information

Data or details that are crucial or necessary to understand a context, make a decision, or progress in a process.

Agree

To have the same opinion or view about something; to consent or concur.