Technological changes that reduce transaction costs and expand the availability of low-cost access to information
A) increase GDP, but they generally fail to improve the welfare of people.
B) improve the well-being of people, but they often exert only a small impact on GDP, and sometimes they actually lead to a GDP reduction.
C) increase the consumer price index, but not the GDP deflator.
D) increase the GDP deflator, but not the consumer price index.

Question

Quizplus · Accepted Answer

Technological changes that reduce transaction costs and expand the availability of low-cost access to information will improve the well-being of people. However, their impact on GDP can be small or even negative, as they can lead to reduced spending on certain goods or services, and/or disruptions in certain industries. Overall, their impact on GDP is uncertain and varies depending on the specific nature of the technological change.

Technological Changes That Reduce Transaction Costs and Expand the Availability